The European Commission has proposed a ban on imports of diamonds and liquefied petroleum gas from Russia and a tougher enforcement of a price cap on Russian oil as part of new sanctions against Moscow, EU diplomats said on Wednesday.
The 12th package of sanctions to be discussed by the European Union’s 27 member states on Friday also includes a ban on the transit through Russia of goods and technology that could boost the country’s industrial capabilities, as well as import bans on a range of metals.
Agreement on a final package is expected to take weeks, as a deal requires the unanimous support of all 27 EU states.
The proposal includes a ban on direct diamond imports from Russia from 1 January 2024 and the introduction of a traceability mechanism from March that would prevent imports of Russian gems processed in third countries, EU diplomatic sources said.
The traceability mechanism is to be coordinated with G7 countries, including the United States, Canada, Britain and Japan.
To tighten the implementation of the oil price cap, set by the G7 at $60 per barrel of crude, the proposal calls for shipping companies to detail the shipping and insurance costs for the Russian oil cargoes they carry.
The price cap is now largely circumvented by Russia’s shadow tanker fleet, according to shipping analysts.
“The logic of imposing more transparency is to prevent shipping companies from hiding the real price of the oil carried by the tanker by combining it with shipping and insurance costs,” said an EU diplomat.
To prevent Russia from further expanding its shadow fleet, the EU Commission has proposed export controls on tankers, old and new, to Russia. It was not clear whether major shipping countries such as Greece or Cyprus would agree.
The Commission said in a statement that the package would include new import and export bans, measures to tighten the oil price cap and to counter circumvention of EU sanctions, and would target actors in the Russian military, defence and IT sectors, as well as other key economic actors.
The Financial Times reported that Denmark will be tasked with inspecting and potentially blocking Russian oil tankers passing through its waters under new EU plans to enforce the cap on Russian oil.
The paper said Denmark would target tankers passing through the Danish straits without Western insurance, adding that all of Russia’s oil shipped through the Baltic Sea, or about 60% of its total seaborne exports, passes through the Danish straits on its way to international markets.
The Commission did not comment on the FT report.
An EU official, speaking on condition of anonymity, said the sanctions proposal did not impose any new obligations on Denmark in terms of price cap enforcement, and several EU diplomats said there was no mention of Denmark or ship inspections in the Commission proposal.
The proposal also extends the list of goods that cannot be sold to Russia because they could help Moscow’s war against Ukraine, and bans the sale of software for managing companies and for industrial design and production, diplomats said.
If approved, the Commission said the proposal would also “sanction over 120 additional individuals and entities for their role in undermining the sovereignty and territorial integrity of Ukraine”.
