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It’s a rather colorful new package of sanctions against Russia that the European Commission will present to member countries over the weekend and is set to be adopted in the coming days. In addition to a gradual oil embargo, it also envisages a ban on consulting for European companies in the financial and service sectors, an export ban in the chemical sector and further sanctions against various personalities.
First, according to information gathered here in Brussels on Saturday, April 30, the proposals presented by the EU executive to the diplomatic representatives of the 27 provide for an expansion of the list of Russian banks excluded by Swift, which are now sane-known financial intelligence system. Three credit institutions were affected, including Sberbank, a bank that collects a third of Russia’s banking assets. A Belarusian bank could also be affected.
Towards a gradual oil embargo
As has been expected for days, the European Union wants to cut off oil supplies from Russia (see Il Sole / 24 Ore of April 28). The issue is very sensitive as some European countries are particularly dependent: more than Germany, Slovakia and Hungary. The upshot is that the embargo proposed by the European Commission for the 27 will be gradual and should come into full effect on December 31, which could draw criticism from some.
However, one diplomat explains that the same gradualness sanctions “the irreversibility of sanctions”. In the meantime, the Twenty-seven might actually be able to eliminate its dependency on Russian crude. At the same time, measures are being introduced to prevent Russian oil exports to third countries. In this sense, Brussels proposed to the Twenty-Seven to prevent the issuance of European insurance policies or transit through European ports. Also of interest is the EU decision to ban consulting activities in Russia in the service and financial sectors.
Industry and oligarchs are also being targeted
On an industrial level, the new package of sanctions concerns export controls to Russia of around 80 chemical products that are more likely to be used in the manufacture of chemical weapons. The export ban will also affect equipment needed to manufacture chemical weapons. In addition, the sixth package of sanctions since Russia invaded Ukraine at the end of February stipulates that three channels will also be affected after the bans on Sputnik and Russia Today decided in early March. Technical work is still ongoing on this front to use the most appropriate legal basis.