Agreement in Brussels: EU imposes new sanctions on Russia

New package of punitive measures

Agreement in Brussels: EU imposes new sanctions on Russia

An entry ban for Russian Ukraine fighters and much more: A new EU sanctions package is intended to put pressure on Moscow. However, an area that is also important for Germany is left out.

In view of the ongoing Russian war of aggression, the EU states have taken a stand against the Ukraine agreed on a new package of sanctions. The plans include, among other things, further measures against the Russian financial and energy sectors as well as an entry ban for Russian soldiers, as EU diplomats said Brussels communicated.

EU Council President António Costa and Commission President Ursula von der Leyen welcomed the decision on social media. “At a time when Ukraine has gained military momentum, our sanctions continue to weaken the economic foundations of Russian warfare,” von der Leyen wrote on X. Costa said it was a “decisive step to put pressure on Russia to strengthen.”

In order to limit Russia’s revenue from oil exports, it is planned to suspend the automatic adjustment of the so-called oil price cap for twelve months. Otherwise this would have to be due to the increased world market prices as a result of the Iran war and the extensive blockade Strait of Hormuz be raised, which would mean more money for Russia.

The oil price cap applies to the sale of Russian oil to third countries such as India, China or the Türkiye and was launched in 2022 together with the USA and Japan, Canada and Great Britain introduced. To enforce it, sanctions will be threatened against companies involved in transporting Russian oil at a price above the price cap. The regulation also targets shipping companies, but also companies that offer insurance, technical assistance and financing and brokerage services.

The agreement was preceded by weeks of difficult negotiations between the member states. Several capitals implemented weakening measures or concessions in favor of domestic companies. Among other things, they argued that the sanctions should not cause greater economic damage in the EU than in Russia.

A fundamental dilemma emerged: Given the already very long list of punitive measures, it is becoming increasingly difficult to find further sanctions that will noticeably affect Russia, but at the same time have a comparatively small impact on companies and people in the EU and third countries.

One example in this round of sanctions were demands from Greece, which, due to the interests of domestic shipping companies, ensured that a ban on the transport of Russian liquefied natural gas to third countries was not implemented quite as comprehensively as planned because old contracts were initially left out.

In addition, the EU Commission’s proposed import restrictions on Alaska pollack from Russia and an import ban on cod do not apply.

According to EU diplomats, countries like Germany, Portugal and France in the negotiations to weaken the proposed sanctions. Because compromise proposals also failed to find consensus, the proposal was eventually scrapped entirely. The diplomats said that Germany was prepared to agree to a compromise. However, other member states had even more extensive demands.