Sanctions Against the Russian Federation - Are EU Ambassadors Ready to Approve the 18th Package.

I warn that the issue, in particular the transportation of oil by tankers, may significantly complicate the resolution of this issue considering that discussions are set to unfold from the beginning of next week.

The ambassadors of the European Union are at the final stage of agreeing on the 18th package of sanctions against Russia due to its invasion of Ukraine. One element of this package is a price cap on Russian oil.

Sanctions Against the Russian Federation

All aspects of the 18th package of sanctions against the Russian Federation have already been agreed upon, however, one EU member state still has certain objections regarding the new pricing mechanism. It is expected that these issues will be resolved before the EU Foreign Affairs Council meeting in Brussels on July 14.

Among the sanctions is a 'dynamic mechanism' to cap the price on Russian oil. According to the European Commission's proposal, the price of oil should be 15% lower than the average market price over the last three months. This price will be reviewed every six months.

Slovakia, which held up the package due to concerns regarding Russian gas supplies, agreed to the new measures after receiving guarantees from the European Commission.

A significant limitation on the price of Russian oil, agreed upon by the G7 countries in December 2022, includes a ban on the transportation of oil from Russia by tankers if the price exceeds the established value. This ban also reflects insurance and reinsurance of these shipments if the established limit is exceeded.

The new package of sanctions includes restrictions for a Russian oil refinery in India, two Chinese banks, and a flag registry, as Russia uses potentially 'convenient' flags to evade sanctions.

It is also known that the European Union decided to avoid Slovakia's attempts to halt the agreement on the 18th package of sanctions against Russia.

The President of Ukraine, Volodymyr Zelensky, reported that Ukraine has synchronized its sanctions against the Russian Federation with European ones.