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European Union

EU Unveils New Sanctions Package Against Russia Over Ukraine War

Strategic Insights

— 1 min read

The European Union (EU) has announced its 18th package of sanctions against Russia, aimed at curbing the country's oil and energy sector's revenues. The package includes a reduction of the oil price cap from $60 to about $48 a barrel, the designation of the Vadinar Refinery in India, and measures aimed at 105 more shadow fleet ships. The EU's foreign and security policy chief Kaja Kallas said the bloc has approved "one of its strongest sanctions packages against Russia to date". The sanctions are a response to Russia's war against Ukraine, with the EU seeking to limit Russia's oil revenues and increase pressure on the country to end its aggression.

Key Takeaways:

  • The EU has announced its 18th package of sanctions against Russia, which includes a reduction of the oil price cap from $60 to about $48 a barrel.
  • The sanctions package includes the designation of the Vadinar Refinery in India, which is owned by Russia's state-owned energy exploration and production major Rosneft.
  • The EU will ban the import of refined petroleum products made from Russian crude oil and coming from any third country, with the exception of Canada, Norway, Switzerland, the UK, and the US.
  • The EU will also impose further sanctions "across the shadow fleet value chain" used by Russia to move energy across the world.
  • The sanctions target 105 additional vessels, bringing the total number of listed vessels to 444, and will limit access to funding for Russian banks and ban the use of Nord Stream pipelines.

Statistics:

  • Russia accounts for nearly 35% of overall energy supplies to India.
  • The Vadinar Refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (bpd).
  • The EU's sanctions package targets 444 vessels listed, including 105 new additions.
  • The reduction of the oil price cap from $60 to about $48 a barrel aims to align it with current global oil prices.

Sources:

  • "EU Announces New Sanctions Package Against Russia Over Ukraine War". Hindustan Times, 18 July.
  • European Union. "Statement on the 18th package of sanctions against Russia". 17 July.

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