The European Commission has proposed a sweeping ban on any services that support Russia's seaborne crude oil exports, aiming to stunt Moscow's key source of income for its war on Ukraine. This move is part of the EU's efforts to increase pressure on Russia and encourage it to engage in serious peace negotiations.
The proposal would end Western shipping services' role in supplying Russian crude oil to India and China, rendering obsolete a price cap on purchases of Russian crude oil set by the G7. The ban would also affect maintenance and other services for Russian LNG tankers and icebreakers.
Commission President Ursula von der Leyen stated that Russia will only come to the table with genuine intent if it is pressured to do so, emphasizing the need for a broad clampdown on Russian crude exports. The proposed sanctions package includes new import bans, restrictions on European exports to Russia, and asset freezes on entities and individuals involved in sanctions evasion.
The EU aims to prevent export bans being dodged by targeting companies that enable Russia to circumvent Western sanctions. The proposal is the 20th since Russia's full-scale invasion almost four years ago and will require unanimity among EU member states to become law.
This proposed ban on Russian crude exports marks a significant escalation in the EU's efforts to restrict Moscow's revenue streams, which have been a key factor in sustaining its war effort. The effectiveness of this measure will depend on the ability of Western shipping services to comply with the new restrictions.
