EU Tightens Grip: Sanctions Target Russia's War Economy, Cut Oil Revenue

The European Union has intensified its sanctions on Russia, focusing on its oil, banking, and defense sectors in a bid to weaken Moscow's war economy while maintaining stability in the global oil market. Herve Delphin, the EU Envoy to India, detailed the measures, which include a targeted attack on an Indian refinery under Rosneft's control, asserting that the sanctions won't disrupt global oil supplies.

According to Delphin, the EU's 18th sanctions package reduces the oil price cap from USD 60 to USD 47.6 per barrel, aiming to further decrease the revenue stream that funds Russia's military actions in Ukraine. New Delhi, however, remained firm in its stance against unilateral sanctions, stressing the need for fair energy trade policies.

Adjusting its price cap based on market values, the EU is providing buyers with stronger bargaining powers by imposing a discount on Russian oil. European citizens reportedly support the measures, despite potential higher costs from alternative suppliers. The sanctions also target 450 shadow fleet tanker ships used by Russia to evade previous sanctions, curtailing Moscow's oil revenue and thus affecting its military funding.

(With inputs from agencies.)