Support for Ukraine: Agree in Brussels: EU imposes new Russia sanctions

The EU imposes new sanctions due to the continuing Russian attack war against Ukraine. After weeks of blockade by Slovakia, the 18th package with punitive measures in Brussels could finally be decided.

According to the EU foreign representative Kaja Kallas, it is one of the strongest so far. Chinese companies are also targeted that support Russia’s war of aggression.

Specifically, the new sanctions should further reduce Russian income from the export of oil to third countries and make the Russian financial sector. In addition, you aim to exclude the Nord Stream 1 gas pipeline and use the Nord Stream 2 pipeline.

Three of the four tubes from Russia to Germany were destroyed in an attack in September 2022. In the event of a repair, the Pipelines Russia running through the Baltic Sea could enable billions in profits by selling gas.

Veto of Slovakia delayed sanction package

The agreement on the sanction package was supposed to take place immediately after the Juni summit of the heads of state and government. The Slovak Prime Minister Robert Fico, however, prevented this with a veto threat.

The agreement was now made possible by concessions. Slovakia was guaranteed that it does not have to fear any serious economic and financial consequences if, according to the new sanction package, a plan for a complete import stop by Russian gas is also implemented. Fico cannot block this plan because, in contrast to the sanction package, it can also be decided against the will of Slovakia by majority.

Oil price lid is dynamically adjusted

In addition, Malta, Greece and Cyprus recently had concerns about measures that the Russian income from exporting crude oil in third countries. The countries feared unjust large disadvantages for domestic shipping companies if the so -called oil price lid is reduced too much. As a compromise, it has now been agreed to regularly adjust the price limit, so that it is not more than 15 percent below the average market price in the long term. In a first step, it is to be reduced from the current 60 to $ 47.60 per barrel (159-liter barrel).

Originally planned to reduce the price lid for Russian oil to $ 45 per barrel. It applies to the sale of Russian oil in third countries such as India, China or Turkey and was introduced in 2022 together with the USA and Japan, Canada and Great Britain.

In order to enforce it, companies are threatened to threaten sanctions that are involved in the transport of Russian oil at a price above the price lid. This regulation aims at shipping companies, but also on companies that offer insurance, technical help as well as financing and placement services.

Long list of new sanctions

In addition to the measures mentioned above, the following was also agreed according to diplomats:

Introduction of an import ban for refined products from Russian crude oil. These are, for example, fuels for cars and aircraft as well as heating oil. This is intended to conclude a legislative gap that has previously enabled Russia to export indirect exports via third countries. Introduction of a ban on financial transactions with companies from third countries that handle oil-related sanctions. List of more than 100 ships that are part of the so-called Russian shadow fleet to circumvent energy rates. In the future, they will no longer be allowed to enter ports of EU countries and may no longer be insured, financed or equipped by European companies. A total of around 450 ships will be affected in the future, listing an additional 22 banks that are decoupled from the Swift financial communication system; In addition, expansion of the punishment to a complete ban on transactions. Sanction of several Chinese companies that support Russia’s war of aggression directly or indirectly, as well as the largest Rosneft refinery in India. Introduction of further export restrictions; Machine tools that can be used in the military-industrial system are affected. In the future, it will include more than 2,500 entries.

China sharply criticized the measures against domestic companies and threatened retaliation. Europe should stop affecting Chinese companies without factual basis, said foreign office spokesman Lin Jian in Beijing. China will take the necessary measures to protect the rights of domestic companies. With regard to Ukraine, the People’s Republic campaigned for peace negotiations and never delivered fatal weapons to the parties to the conflict.

How hard do the Russia sanctions hit?

The effectiveness of Russia sanctions remains controversial. Critics doubt that they have a great influence on Russia’s President Vladimir Putin’s policy. Supporters, on the other hand, point out that the punitive measures have to come up with the Russian economy and the state had to cope with considerable loss of income. Accordingly, Russia would have long ended the Ukraine War without the sanctions for a long time.

EU Commission President Ursula von der Leyen warned Putin that the EU would increase the pressure until he ends the war. The aim of the heart of Russia’s war machine is aimed, she said.