Tankers, Chinese Firms in the Crosshairs as EU Shores Up Sanctions on Russian Oil Revenues

By Julia Payne

BRUSSELS, Nov 26 (Reuters) – European Union envoys will discuss a 15th package of sanctions on Wednesday in response to Russia’s 2022 invasion of Ukraine, including on tankers carrying Russian oil and Chinese firms involved in making drones for Moscow, EU diplomats said.

A total of 29 entities and 54 individuals are lined up to be added to more than 2,200 on the existing sanctions list, which bans travel and freezes their assets within the 27-member bloc, the diplomats said. They did not anticipate significant dissent.

A more significant package will be proposed in January once Poland takes over the EU’s rotating presidency from Hungary, whose Russia-friendly leader has frequently delayed or blocked measures that help Ukraine.

In September, Reuters uncovered that Russia had established a weapons program in China to develop and produce long-range attack drones.

The proposal to add 48 tankers to the list is part of efforts by Western allies to limit Russian oil revenues by strengthening the Group of Seven nations (G7) price cap on Russian oil.

The effectiveness of the cap, imposed in late 2022, was always expected to decrease over time, Western officials said.

As previously reported by Reuters, the 16th package is expected to tighten restrictions on Russian liquefied natural gas (LNG) flows and expand the use of the “No Russia” clause that would oblige subsidiaries of EU companies in third countries to prohibit the re-export of certain goods to Russia.

The EU also wants to pressure financial institutions that help Russia circumvent Western restrictions, in line with a move Washington made earlier this year.

(Reporting by Julia Payne; editing by Philippa Fletcher)

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