European Union ambassadors remain divided over a new round of sanctions targeting Russia, with a critical deadline of February 24th fast approaching. The bloc aims to approve measures coinciding with the fourth anniversary of Russia's full-scale invasion of Ukraine.
A primary point of contention is a proposed full ban on maritime services for Russian oil tankers. If enacted, this would end the Group of Seven (G7) price cap on Russian crude, currently set at $44.10 per barrel. The EU believes the cap is no longer effective and additional pressure is needed to curb the Kremlin's war financing.
Under the proposed ban, EU companies would be prohibited from offering services like insurance, banking, and shipping to vessels carrying Russian crude, aiming to increase transportation costs and diminish profits. However, Greece and Malta, nations with significant maritime industries, fear economic harm and the empowerment of Russia's "shadow fleet" of older vessels used to bypass restrictions. Their opposition might soften if other G7 allies implement similar bans.
While the European Commission views an agreement at the G7 level as ideal, it is not considered indispensable for the EU to proceed. Economy Commissioner Valdis Dombrovskis stated the EU will not hesitate to act independently if broader agreement is not reached. Diplomats emphasize the EU's geographic advantage in influencing Russian oil trade and express determination to move forward, even without U.S. participation.
Negotiations also focus on activating an Anti-Circumvention Tool to prevent the re-export of EU-made goods, such as computer numerical machines and radios, to Russia. Kyrgyzstan has been identified as a potential back channel for Moscow to acquire blacklisted items, with EU exports to the country having significantly increased since the invasion.
Hungary and Slovakia have voiced general reservations about the sanctions package, consistent with their past positions. Foreign affairs ministers are scheduled to meet in Brussels on Monday to address Russia's war, with the goal of adopting the 20th sanctions package. High Representative Kaja Kallas stressed that sanctions are hurting Russia's economy and limiting its ability to wage war, pushing for higher costs for the Kremlin.