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| Oil and gas remain one of the most important sources of income for the Russian economy, which the EU is constantly looking for ways to tighten. (Source: Ukrainianworldcongress) |
One of those new ways is to block Russian tankers from reaching markets. According to Reuters , the European Union (EU) has planned to instruct Denmark to inspect and potentially block Russian tankers passing through its waters, as the West looks for new ways to limit Russia's oil revenues.
The G7, EU and Australia imposed a $60-a-barrel cap on Russian seaborne oil exports in December to punish Russia’s military campaign in Ukraine. But high global oil prices this year have meant that most Russian oil is still sold above the cap.
Under the plan, first reported by the Financial Times , Denmark would control oil tankers passing through the Denmark Strait without Western insurance.
All of Russia's oil is transported through the Baltic Sea, or about 60% of the country's total maritime exports, passing through the Denmark Strait to international markets.
According to the International Energy Agency (IEA), Russia's oil export revenue fell in October 2023 as global oil prices fell and the US imposed sanctions on ships violating Western restrictions. But in the previous months, Russia's oil export revenue continued to rise. In September, Russia earned $18.8 billion from oil exports, the highest profit since July 2022. In July 2023, Russian oil surpassed $60/barrel, reaching over $81/barrel.
Recently, the information that attracted attention was that the US Treasury Department sent a notice to ship management companies requesting information about 100 ships that they suspect of violating Western sanctions related to Russian oil, according to Ukrinform .
The notices were sent last week to shipowners in about 30 countries by the Office of Foreign Assets Control (OFAC), according to a source familiar with the matter, the biggest U.S. move since Washington and its allies imposed a price cap to limit Moscow’s oil revenues.
Accordingly, one of the companies that received a request for information from OFAC is Beks Shipping of Türkiye, but has not yet received a response from Beks.
Observers said the US Treasury Department has not yet commented on this information. But a spokesperson for the Department said, “While we do not confirm or comment on investigations or enforcement actions, the Treasury Department is committed to enforcing price caps and reducing Russian resources that are funding the military campaign in Ukraine.”
Meanwhile, it is not yet known whether the plan to block Russian oil tankers from passing through the Danish Strait is part of the 12th package of sanctions against Moscow. However, in the new package of sanctions that Europe is discussing that directly targets Russia's economic revenue, the EU is targeting key export items to Russia.
Bloomberg reported that according to relevant internal EU documents, within the framework of the 12th package of sanctions against Russia, the EU is proposing to ban the export of machine tools and machine parts that Moscow could use to produce weapons for use in special military operations in Ukraine.
The EU also proposes to add chemicals, lithium batteries, thermostats, motors and auxiliary motors for drones to the list of designated goods.
Note that this new package of sanctions is also expected to include an embargo on Russian diamonds, which was postponed from January 1, as well as a move towards an indirect ban on the import of Russian diamonds processed in third countries.
The ban is in line with the G7 agenda.
The proposal is part of the EU’s 12th package of sanctions, which includes measures to better enforce price caps on Russian oil. EU member states will discuss the proposals this week, but they could be amended before they receive final approval from all members of the bloc.
The main goal of the new sanctions package remains to further restrict the Kremlin's ability to circumvent EU sanctions and finance its military campaign in Ukraine, as well as to cut off Moscow's revenue sources.
The 12th package of EU sanctions against Russia is expected to affect the country's exports and imports by around EUR 5 billion.
According to the plan, if all the proposed sanctions against Russia are approved, more than 30 entities will be added to the list of individuals and organizations with restricted transactions, including companies in Kazakhstan, Uzbekistan and Singapore as well as several Russian engineering companies.
Earlier, EU High Representative Josep Borrell said that the EU is finalizing the 12th package of sanctions against Russia, which will include additional restrictions on individuals; tighter regulations to limit the price of Russian oil, as well as a ban on imports of Russian crude oil and Russian diamonds into the European market.
According to the procedure, after Brussels organizes a review and consultation at the meeting of the EU General Affairs Council, a package of documents will be submitted to EU heads of state and government this December.
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