EU poised to tighten sanctions as Russia defies price cap
European Union countries have reached a preliminary agreement on a new package of sanctions against Russia. However, this is a very weak package, and diplomats unofficially admit that EU countries have reached the limit of their ability to adopt more extensive economic sanctions.
On Wednesday, EU countries are expected to preliminarily agree on the 17th package of sanctions on Russia, aiming, among other things, to hinder the Kremlin from selling crude oil in markets at prices higher than those set by the West. "Pressure on Russia must continue to be exerted," stated Polish Finance Minister Andrzej Domański.
On Wednesday, the ambassadors of the member countries to the EU are expected to give the green light. Meanwhile, the new sanctions are to be finally approved by foreign ministers at a meeting in Brussels on Tuesday, 20th May.
New package of sanctions on Russia
The European Commission, which proposed the new sanctions package last week, suggested restrictions on an additional 150 ships from the so-called Russian shadow fleet. Russia uses these ships to evade international sanctions that impose a price cap on its oil.
As a result, the Kremlin sells oil above this limit and earns more. Over 600 ships, sailing under the flags of third countries, transport the raw material. The Polish presidency proposed increasing the number of ships subject to restrictions to 200, for which it received the green light from the countries as early as Monday.
As part of the 17th package, increased export controls will be imposed on additional companies suspected of exporting to Russia technologies that could be used in the war against Ukraine. A further 31 entities from Russia, Turkey, Serbia, Uzbekistan, Vietnam, and the United Arab Emirates will be added. These are enterprises exporting goods or technologies that Russia could use militarily against Ukraine.
