EU's 18th Sanctions Package Aims to Cripple Russian Oil Industry
The EU has approved its 18th sanctions package against Russia, focusing on Russian oil and energy industries, imposing a price cap, banning petroleum imports, and targeting the shadow fleet. The sanctions aim to undermine Russia's finances and include measures affecting Nord Stream and financial institutions.
The European Union has ratified its 18th sanctions package against Russia, aiming to further debilitate Moscow's oil and energy sectors amidst its ongoing conflict in Ukraine. Central to these sanctions is a tighter oil price cap intended to curb Russian revenues while maintaining market stability.
The EU opted to impose a floating price cap on Russian crude, set at 15% below the prevailing market price, equating to $47.60 per barrel. This strategic move could undercut the Group of Seven's $60 price cap, which has become ineffectual as oil futures decline. The United States, however, has shown reluctance to support this alteration.
The sanctions extend to banning petroleum products derived from Russian crude and targeting the shadow fleet of older tankers that transport Russian oil. Additionally, transactions related to the Nord Stream gas pipelines and Russian financial institutions, including the Russian Direct Investment Fund, are prohibited. The sanctions also blacklist new entities circumventing existing measures, including some in China and Turkey.
(With inputs from agencies.)
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