The European Union is preparing to impose a full maritime services ban on Russia’s seaborne crude oil exports, but only after coordinating the move with Group of Seven (G7) countries.
EU sanctions envoy David O’Sullivan said that the bloc supports the ban in principle but wants alignment with G7 partners before taking a final decision. The proposal aims to further reduce Moscow’s oil revenues, which remain a key source of funding for its war in Ukraine.
EU Seeks G7 Coordination
The European Commission proposed banning all maritime services that support Russia’s seaborne crude oil exports earlier this month. The measure would cover shipping-related services provided by EU-based companies, including tanker operations and other logistical support. According to O’Sullivan, the EU is currently enforcing the oil price cap mechanism, which was recently lowered to US$44 per barrel.
The proposal aims to further reduce Moscow’s oil revenues, which have fallen sharply in recent months. The EU intends to continue applying pressure on Russia’s seaborne crude oil exports. The G7 introduced a price cap on Russian crude oil in 2022, and the EU and other countries lowered the cap to match falling global oil prices.
Impact of Maritime Services Ban
A full maritime services ban would end the practice of using Western-owned tankers for Russian oil exports. This would directly affect cargo flows to major buyers such as India and China. If implemented, the ban could make the existing price cap system redundant. The G7 has struggled to fully enforce the cap, as alternative shipping networks and non-Western service providers have emerged.
The United States did not join the group that lowered the price cap. However, Washington imposed full asset freezes on Russia’s two biggest oil companies, Rosneft and Lukoil. The EU has not taken similar action.
Original Article: EU Seeks G7 Coordination Before Imposing Full Maritime Services Ban On Russian Seaborne Oil — Marineinsight