The EU imposes trade and oil sanctions on Russia

The EU Commission announced the proposal for the twelfth package of sanctions against Russia, which it presented to member states for approval.

According to the proposal, more than 120 individuals and organizations that harm the sovereignty and territorial integrity of Ukraine will be included in the sanctions list.

New import and export bans will apply to Russia. The Russian oil price ceiling will tighten further.

Additional measures will be taken to prevent circumvention of sanctions imposed by the EU.

Individuals from Russia’s military, defense and IT sectors, as well as major economic players, will be added to the EU sanctions list.

Those who organized the recent elections in Russian-occupied Ukraine, those responsible for the forced re-education of Ukrainian children, and those involved in disinformation and propaganda activities in support of Kiev will be targeted.

The general framework of EU sanctions against Russia will be further strengthened.

THE IMPORT OF DIAMONDS IS PROHIBITED

According to the international press, the new package of sanctions will prohibit imports of diamonds from Russia. This ban is scheduled to come into effect in early 2024.

Stricter reporting requirements will also be designed to prevent Russian oil purchased in violation of existing sanctions from being sold under false invoices.

In this context, companies will have to explain in detail the transportation and insurance costs of the Russian oil they transport.

New restrictions will be imposed on the import of iron, copper, wire and aluminum sheets and the import of liquefied petroleum gas (LPG) from Russia.

The transit of goods and technologies that could increase Russia’s industrial capacity will be prohibited in the country.

47 people and 72 organizations will be added to the list of people who are banned from traveling to Europe and whose assets in Europe are frozen.

Unanimity of member states is required for new sanctions to come into force.

11 ACTIVE SANCTION PACKAGES

So far, the EU has applied 11 packages of sanctions against Russia due to the war. In this context, a wide range of restrictions were imposed on Russia, including trade, finance, energy, industry, technology, transportation, dual-use and luxury goods, including oil, coal and gold.

On the other hand, on December 5, 2022, the ban on imports of oil transported by sea from Russia by EU countries and the decision to set a maximum price of $60 per barrel came into force.

In this context, if Russian oil is sold to third countries at a price higher than the determined price, companies in G7 and EU countries cannot provide various services such as transportation, insurance and brokerage for this oil. In order to provide these services, Russian oil must be traded below the maximum price.

Recently, Russian oil was trading at $80, above the maximum price set in international markets. (AA)