A new package of anti-Russian sanctions is on the way, they could approve it in Prague
“This ceiling on oil will help to limit Russian income on the one hand, and on the other hand it will maintain stability in the global market,” said von der Leyen. “Today, in this package, we are preparing the legal basis for this cap,” she continued.
The European Commission’s action follows the plan announced in the summer by the G7 advanced economies, which set itself the goal of introducing a global maximum on the price of Russian oil from December 5. Whether the EU joins the initiative will be decided by the member states, who must take all decisions regarding sanctions unanimously.
We can expect resistance from Hungary, whose Prime Minister Viktor Orbán has been criticizing EU sanctions for a long time, but also from Greece and Cyprus, i.e. countries with shipping companies that profit from the transport of Russian oil.
Regarding the mechanism for capping the price, it is not yet clear, however, it is assumed that its core would be a ban on transporting or insuring supplies of Russian oil sold at a price above the set limit.
The plan is based on the assumptions that the system will also be beneficial for countries such as China, although Russia will still be financially motivated to supply oil to the market. The EU itself has already decided to completely eliminate the import of Russian oil by sea by the end of the year.
By preparing new sanctions, the European Union is reacting to the mobilization announced last week by President Vladimir Putin and in the vote on joining Russia hastily organized in Moscow in the occupied parts of Ukraine and in self-proclaimed pro-Russian units in the east of the country.
“We are determined to make the Kremlin pay for this new escalation,” the European Commission president said on Wednesday. According to her, the new trade restrictions may deprive Moscow of additional billions of euros and have affected sectors connected to the “Russian military complex”.
Von der Leyen mentioned electronics and “specific chemicals”, it was not immediately clear whether the plan also refers to the import of Russian diamonds, the ban of which has been speculated in recent days.
The head of EU diplomacy, Josep Borrell, who spoke together with the president of the commission, announced the expansion of the sanctions list by dozens of names, including people involved in the organization of “referendums” in the occupied regions in the east and south of Ukraine.
They also listed actors who spread false information about the war and financially support the occupying forces. In addition, according to Borrell, the EU is also targeting persons involved in evading economic sanctions.
The European Commission will inform member states about its plans on Wednesday, at a regular meeting of ambassadors. They are now awaiting complex negotiations on the final form of the package. EU officials are negotiating at the start of the week that, if it is the right direction, new sanctions could be given the green light at an informal summit on October 7 in Prague.