EU Backs Sanctions Package, Includes 45 Additional Russian Oil Tankers

By Jorge Valero, Ewa Krukowska and Alberto Nardelli

Dec 11, 2024 (Bloomberg) – The European Union gave preliminary backing to a 15th package of sanctions against Russia that includes an extension of an exemption for Slovakia to trade petroleum products derived from Russian oil through early June.

The bloc is trying to phase out Russian energy imports, but this exemption will allow Mol-Slovnaft to export motor fuels made out of Russian oil to the Czech Republic, according to people familiar with the matter.

EU envoys on Wednesday backed the broader sanctions package, which penalizes several Chinese firms that the bloc claims are helping Russian companies develop attack drones for use against Ukraine. The package still needs to be formally adopted by the bloc.

The package includes restrictions on some 45 additional Russian oil tankers and several firms involved in shipping the country’s oil as the bloc aims to curb Moscow’s ability to circumvent existing restrictive measures, the people said on condition of anonymity because the discussions are private.

It also contains listings for more than 50 individuals and nearly 30 entities, freezing their assets and imposing travel bans, according to the draft documents seen by Bloomberg before the approval. 

The European Commission’s sanctions proposal faced some headwinds after Germany, France and Italy defended a one-year extension of a different derogation aimed to helping companies wind up their presence in Russia. That demand was opposed by Latvia and Lithuania.

Vilnius resisted until the last minute compromise language proposed by the EU’s executive arm that warns about the dangers of continuing to do business in Russia because it wanted stronger wording on the need to fully wind down, one person said.

As part of the package, the EU proposed adding to the sanctions list several Chinese entities and a Chinese national, who controls a company that has breached EU trade restrictions; a Hong Kong-based firm that has provided Russian military firms with banned microelectronic components; and North Korean defense officials involved with the country’s decision to deploy troops to aid Russia, according to the draft documents.

The new package came as the Group of Seven pledged last month to take “appropriate measures” against China and other countries supporting Russia’s war effort in Ukraine. EU leaders are scheduled to discuss Russia’s war of aggression against Kyiv and the support provided by third countries at a leaders’ summit in Brussels next week, according to the meeting’s draft conclusions.

The measures also include export restrictions on about three dozen entities involved in helping Moscow skirt trade sanctions.

© 2024 Bloomberg L.P.

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