The European Union is facing difficulties in implementing a new sanctions package aimed at combating the illegal sale of Russian oil through foreign ports and banks. In particular, several European countries are opposing new restrictions, which could lead to a significant weakening of the bloc’s sanctions policy.
This is reported by Finway
Disputes Surrounding Ports and Banks
Some EU member states are wary of proposals for sanctions against ports in Georgia and Indonesia. Italy and Hungary have expressed concerns regarding restrictions on the Georgian port of Kulevi, while Greece and Malta are questioning the appropriateness of sanctions against the Indonesian port. Separately, Italy and Spain are opposing the imposition of sanctions against one of the banks in Cuba, which is the only bank on the island conducting foreign currency operations, serving diplomats and EU citizens.
Skepticism is heightened by a parallel initiative to replace the price “ceiling” on Russian oil with a complete ban on maritime services, such as insurance and transportation. However, this step is only possible with the support of the “G7” countries, where, according to sources, the United States has not yet determined its position.
Additional Proposals and New Restrictions
The European Commission is also proposing to impose a ban on the export of machinery and certain radio equipment to Kyrgyzstan, arguing that these goods could be used to support Russia’s military actions. Since the onset of the full-scale war in 2022, the export of sanctioned technologies from the EU to Kyrgyzstan has increased eightfold, while the supply of such goods from Kyrgyzstan to Russia has surged by 1000%. Responsible EU officials are planning to meet with the Kyrgyz government to discuss this issue soon.
Additionally, the new sanctions package includes proposals for restrictions against several companies in China and other countries that, according to the EU, supply resources for Russia’s military machine. There are also plans to expand the sanctions list with additional vessels from the so-called “shadow fleet,” introduce new trade restrictions, and target cryptocurrency operators and foreign banks that help Moscow circumvent existing sanctions.
“The proposals that the European Commission presented earlier this month are aimed at further reducing Russia’s oil revenues, as officials seek to increase pressure on Moscow to end its war against Ukraine.”
At the same time, unanimous support from all EU member states is required for the adoption of new sanctions. Resistance and skepticism from individual countries risk significantly diminishing the effectiveness of future restrictions. The bloc aims to finalize the package within the current month.