According to Euronews, a compromise was reached at the level of EU permanent representatives. The new measures must now go through a formal approval process. The package marks another step by Brussels in its attempt to limit Russia’s revenue and make it more difficult to circumvent existing sanctions.
Russian LNG became the main point of contention. Greece opposed restrictions that could affect the operations of its shipping companies. Athens sought the ability to continue transporting Russian gas to customers outside the EU.
Ultimately, the bloc’s member states agreed to an exemption: Greek companies will be able to transport Russian LNG outside the European Union under contracts signed before the start of Russia’s full-scale invasion of Ukraine in February 2022. This decision will be reviewed annually.
Particular attention to this issue stems from the activities of the Greek shipping company Dynagas, which is linked to billionaire George Prokopiou. The company operates specialized gas carriers, including ice-class vessels, used to transport LNG from Russia’s “Yamal LNG” project.
Brussels Maintains Price Cap on Russian Oil
One of the key points of the negotiations remained the mechanism for capping the price of Russian oil. The EU decided against raising the current cap and opted to keep it at $44 per barrel for another 12 months.
Previously, there was a risk that the limit would be automatically raised to $58 per barrel. Officials in Brussels feared that such a move could lead to an increase in Russia’s revenue from oil exports.
European Commission President Ursula von der Leyen stated that the EU’s goal is to prevent Russia from reaping additional benefits from fluctuations in global markets.
Banks, crypto platforms, and the “shadow fleet” are under attack
The new package expands sanctions against entities that the EU considers to be involved in circumventing the restrictions.
The list of measures includes restrictions against Russian banks, cryptocurrency platforms, and companies involved in oil trading. Sanctions will also be expanded to cover more than 250 individuals and entities that Brussels accuses of supporting the Russian military campaign, spreading propaganda, or helping to circumvent sanctions.
A separate focus is on Russia’s “shadow fleet,” which is used to transport oil in circumvention of Western restrictions. More than 600 vessels have already been denied access to European ports and services, and the EU continues to expand this list.
A Compromise After Disagreements
Negotiations on the package were marked by serious disagreements among EU countries.
Some proposals were watered down following objections from certain member states. In particular, the idea of restricting imports of Russian seafood, including cod and pollock, was not included in the final version due to the positions taken by Portugal and Germany.
Bulgaria also secured the removal of two names from the proposed sanctions list: Patriarch Kirill, head of the Russian Orthodox Church, and Russian businessman Vagit Alekperov.
The proposal to restrict the entry of Russian military personnel into the Schengen Area was also softened. Instead of an immediate ban, EU countries agreed to continue working on a possible mechanism.
Austria received a commitment to continue discussions regarding the investment company Rasperia, which is linked to Raiffeisen Bank International’s losses in Russia.
