- Most oil imports would be banned by end year, draft says
- Sanctions package also forbids providing insurance to ship oil
European Union ambassadors are set to approve a sixth package of sanctions over Moscow’s invasion of Ukraine, banning most Russian oil imports by year-end and restricting Russia’s ability to ship crude to countries worldwide, reports Financial Times.
The sanctions would forbid the purchase of crude oil from Russia delivered to member states by sea in six months and refined petroleum products in eight months, according to a draft document seen by Bloomberg.
EU set to approve sanctions
Oil delivered by pipeline would be temporarily spared after the bloc’s leaders reached a compromise on Monday night, overcoming weeks-long resistance from Hungarian Prime Minister Viktor Orban.
The suite of actions would also see Russia’s biggest bank, Sberbank, cut off the international payments system SWIFT. That measure would come into force 10 days after it has been adopted, according to the draft. The same restriction, due to be discussed by EU ambassadors as part of the whole package on Wednesday afternoon, also targets Credit Bank of Moscow and the Russian Agricultural Bank.
Orban, who turned 59 during the summit, was also granted assurances that Budapest could source alternative supplies should Hungary’s pipeline deliveries be disrupted.
“If the supply of crude oil by pipeline from Russia to a landlocked member state is interrupted for reasons beyond the control of that member state, the import of seaborne crude oil from Russia into that member state should be allowed, by way of an exceptional temporary derogation,” says the document, which is subject to change.
Insurance Ban
The package includes a ban on insurance related to shipping oil to third countries, which will take effect six months after the formal adoption of the measures, and aims to restrict Moscow’s options to divert its supplies elsewhere in the world.
It would “be prohibited to provide, directly or indirectly, technical assistance, brokering services or financing and financial assistance, related to the transport, including through ship-to-ship transfers, to third countries of crude oil or petroleum products which originate in Russia or which have been exported from Russia,” the draft says.
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Source: Financial Post
