Another EU sanctions package against Russia

Dhe EU countries agreed on another package of sanctions on Wednesday Russia agreed. They are thus laying the foundation for a price cap on Russian oil supplies, which is to be enforced worldwide. The cap only affects oil shipped with tankers. That gave approval to Hungary, which gets Russian crude oil via a pipeline and is not participating in the EU supply freeze that comes into effect in early December. Greece, Malta and Cyprus were promised financial compensation if they suffered “significant business losses” in the transport sector. The package, which is due to be formally approved on Thursday, also includes further bans on imports from and exports to Russia.

Thomas Gutschker

Political correspondent for the European Union, NATO and the Benelux countries based in Brussels.

The maximum future level of the price of oil from Russia is now to be determined in consultation with the G-7 countries. In fact, Russia is already selling its oil on the world market at a discount. The price cap is intended to be enforced by banning deliveries in the G-7 countries and throughout EU can only be insured and transported if they comply with the specified upper price limit. This also applies to China and India, which are mainly supplied by tankers registered in the EU.

The operators of the largest fleets were therefore concerned that they would lose market share to countries that undermine the regime, for example by flagging ships. As a deterrent, it has now been decided that ships transporting oil at higher prices may never again use services in the EU, especially insurance. The EU Commission will set up a mechanism to register violations. If this leads to “significant business losses”, the Commission will “propose measures to dampen the negative effects,” says the compromise, which Cyprus and Malta also agreed on Wednesday.

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