EU countries will be able to sell confiscated Russian oil
This is reported by EURACTIV.
What the new sanctions entail
According to the European Commission, the new mechanism will allow EU countries to sell off cargoes seized following the detention of vessels which, according to the EU, are being used by Russia to circumvent restrictions, in particular the oil price cap set by the G7 countries.
Brussels notes that such detentions have become increasingly frequent recently, and the new rules are intended to regulate the future handling of confiscated cargoes. This primarily concerns oil, but a similar mechanism could also be applied to other goods, such as grain.
What is known about the detentions of vessels
According to the publication, in March Belgium detained a vessel in the North Sea linked to Russia’s ‘shadow fleet’. Its cargo capacity is around 330,000 barrels of oil.
In June, France took control of another tanker which, according to Politico, is suspected of circumventing sanctions. The vessel loaded oil in Murmansk, Russia, and was capable of carrying approximately 600,000 barrels. Russia has described such actions as “piracy” and has stated its intention to respond “by all means available”.
Other measures in the new sanctions package
The EU’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas, reported that on 20 July, in the Mediterranean Sea, European maritime security services carried out an inspection of the MV South Star, a vessel which, according to the EU, is linked to Russia.
According to Kallas, any vessel that helps circumvent sanctions contributes to the financing of Russia’s war against Ukraine, which is why the European Union is combining sanctions pressure with practical action at sea.
This new package is the 21st set of EU sanctions since the start of Russia’s full-scale invasion of Ukraine. It also provides for the price cap on Russian oil to remain at $44 per barrel for the next 12 months. The European Commission estimates that this could reduce Russia’s oil export revenues by approximately $3.5 billion over the course of the year.
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