EU considers replacing Russian oil price cap with full maritime ban – Bloomberg

The European Union is discussing a proposal to replace the current price cap on Russian oil with a complete ban on providing maritime services for its transportation as part of preparations for the 20th sanctions package.

Source: Bloomberg, citing informed sources

Details: The sources said that if EU member states support the initiative, European companies would be fully prohibited from providing services necessary for transporting Russian oil, including insurance and shipping.

The key difference of the new approach is that the ban would apply regardless of the price (under the current system, transportation is permitted if the oil is purchased below the established price cap).

Bloomberg sources stressed that a full ban would significantly increase pressure on the Russian economy and greatly facilitate monitoring compliance with the sanctions regime.

EU countries have been briefed on the draft of the 20th sanctions package, which Brussels aims to approve by the end of February.

However, the decision requires unanimous approval from all member states. The sources stated that several EU capitals had spoken out against replacing the price cap with a full ban on services.

The new package is also expected to include restrictions on Russian banks and oil companies, cryptocurrency services, financial institutions in third countries that help Russia evade sanctions, and vessels linked to Russia's shadow fleet.

Background:

• Next week the European Commission is expected to announce a proposal for the 20th package of EU sanctions against Russia. The bloc plans to adopt it by the fourth anniversary of Russia's full-scale invasion of Ukraine.
• European Pravda sources said that the 20th package will be largely focused on targeting Russia's shadow fleet.
• In addition, the 20th package may include tighter restrictions on Russian mineral fertilisers, which remain the third-largest category of Russian exports to the EU, and additional bans on the export of dual-use goods to Russia.
• The EU's 19th sanctions package against Russia was approved on 23 October.

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