EU’s 21st Sanctions Package Freezes Oil Price Cap, Hits Russia with Most Listings in 4 Years
The European Union has approved its 21st package of sanctions against Russia, marking a significant milestone in the bloc’s efforts to weaken Moscow’s economic foundations as it continues to fuel the war in Ukraine. The package, which was agreed upon after overcoming internal infighting, features a record number of blacklistings, with Russia’s financial and energy sectors being the primary targets.
The EU has designated 218 entities, including Russian banks and cryptocurrency platforms linked to the A7 network, which had already been targeted by previous sanctions designations. Additionally, 33 Russian and four foreign banks will be placed under a transaction ban, prohibiting them from sending or receiving funds to the EU. Fourteen cryptocurrency platforms in various countries will also be prohibited from conducting transactions with EU entities.
The package’s most significant component is the freezing of the Russian oil price cap at its current level of $44.10 per barrel for another 12 months. This measure aims to blunt Moscow’s revenues as oil prices surge due to the ongoing conflict. The original deadline for locking in the price cap had been extended from last week to Thursday, and if it had lapsed, the Russian oil price cap would have automatically updated to 15% below the average market price.
Targeting Russian Banks and Cryptocurrency
The EU’s sanctions package targets Russia‘s financial sector by designating 94 Russian banks and four cryptocurrency platforms linked to the A7 network. These entities will be subject to a transaction ban, prohibiting them from sending or receiving funds to the EU. The package also includes legal language allowing for sanctions on vessels providing refueling services to Russia’s shadow fleet.
EU Foreign Affairs Chief Kaja Kallas emphasized that the package is aimed at hitting Putin where it hurts most: cutting off the financial lifelines he relies on to sustain his war. The measure will allow the EU to impose a full “third-country ban for crypto asset-services,” which could cut off countries deemed to be helping Russia evade sanctions through cryptocurrencies.
The Oil Price Cap, LNG, and the Shadow Fleet
The package’s oil price cap freeze is a significant development in the ongoing conflict. The current level of $44.10 per barrel will remain in place for another 12 months, ensuring that Moscow’s revenues are not boosted by rising oil prices. This measure aims to weaken Russia‘s economic foundations as it continues to fuel its war efforts.
The package also includes additional energy-related measures, including sanctions against 41 more shadow fleet vessels, along with eight entities and one individual for their involvement in shadow fleet activities. The introduction of legal language will allow for sanctions on vessels providing refueling services to Russia‘s shadow fleet. Designations of 18 entities, including a Belarusian refinery, and one individual for supporting Russia’s oil industry have also been included.
Conclusion
The EU’s 21st sanctions package is a significant development in the bloc’s efforts to weaken Moscow’s economic foundations as it continues to fuel its war efforts. The package’s record number of blacklistings, combined with the freezing of the Russian oil price cap and additional energy-related measures, demonstrate the EU’s commitment to imposing meaningful costs on Russia for its actions.
Original Article: EU’s 21st Sanctions Package Freezes Oil Price Cap, Hits Russia with Most Listings in 4 Years | Kharon — Kharon