EU adopts new Russia sanctions package, including G7 oil price cap

The European Union on Thursday adopted a new sanctions package aimed at stepping up and reinforcing restrictive measures imposed against Russia, the Ministry of Foreign Affairs said. New measures include a G7 price cap on oil, expanded restrictions on services, exports and imports as well as the addition of further individuals and entities to the sanctions list.
Estonia has always stood up for making EU sanctions packages against Russia as severe and effective as possible, Minister of Foreign Urmas Reinsalu (Isamaa) said according to a ministry press release.

"The new sanctions are an important step toward winding down economic relations between the EU and Russia and moving EU companies to look for alternatives elsewhere," Reinsalu said. "Estonia will continue to call for harsher sanctions on the EU level to raise the cost of aggression for Russia until it completely paralyzes Russia's economy and makes it impossible to finance [its war in Ukraine]."

According to a European Council press release, the latest sanctions package was imposed "in light of Russia's escalating war of aggression against Ukraine and the illegal annexation of Ukraine's Donetsk, Luhansk, Zaporizhzhia and Kherson regions."

The package includes an export ban on chemicals, dual-use goods, goods used for torture, advanced technologies, aviation equipment, machinery as well as weapons and their parts that had remained unsanctioned until now. The imports ban list has also been expanded.

The prohibition on providing services will also be expanded to include IT, legal assistance, architecture and engineering.

Also to be introduced is a regulation necessary for implementing an agreed G7 price cap on oil, meaning that once the G7 has set the price limit, member states will unanimously transpose it. A ban will subsequently enter into force on transporting oil bought from Russia for a higher price to third countries. Providing insurance services will be permitted on condition that ships carry Russian oil bought for a price below the price cap. These amendments are set to enter into force on December 5, 2022 and February 5, 2023 for crude oil and refined oil products, respectively.

A total of 30 individuals and 7 legal entities involved in Russia's illegal annexation of several Ukrainian oblasts will likewise be added to the EU's sanctions list.

At Estonia's proposal, the latest sanctions package will also include a ban on providing certain crypto assets services to Russian citizens, residents and companies.