Brussels Signals It Can Act Independently
The European Union is prepared to move forward with a full ban on maritime services for Russian oil tankers even if G7 countries fail to reach a unified agreement. Valdis Dombrovskis emphasized that while coordinated action with G7 allies is preferred, the EU will not hesitate to act alone to tighten economic pressure on Moscow. The 20th sanctions package is targeted for approval by 24 February, marking the fourth anniversary of Russia’s full-scale invasion of Ukraine.
If enacted, the ban would end the G7’s current oil price cap within the EU, prohibiting all European companies from servicing Russian tankers regardless of the price of Urals crude, currently set at $44.10 per barrel. Dombrovskis noted that alignment with the G7 is desirable, but the EU is ready to proceed independently if needed.
Diplomatic Hurdles and Ongoing Talks
Uncertainty remains about how many G7 members will adopt the EU’s proposed measures. United Kingdom, Canada, and Australia, which participates in the price cap coalition, said they are aware of the proposal and are consulting with partners. Officials stress ongoing cooperation to maximize pressure on Russian energy revenues, though the United States and Japan have not responded publicly.
Within the EU, Greece has raised concerns that a unilateral ban could advantage competitors in India and China, strengthen Russia’s “shadow fleet,” and encourage deflagging—when ships switch registries to avoid restrictions. Swedish Finance Minister Elisabeth Svantesson noted that while coordination is ideal, the EU must take necessary steps if broader agreement is not reached.
Kyrgyzstan and Anti-Circumvention Measures
The sanctions package also proposes activating the EU’s Anti-Circumvention Tool for the first time. This measure aims to prevent EU-made equipment, such as CNC machines and radios, from being rerouted to Russia through third countries.
Kyrgyzstan has come under particular scrutiny, as trade between the EU and the country surged from €263 million in 2021 to €2.5 billion in 2024, with much of it comprising machinery and transport equipment that could be repurposed for military use in Ukraine. Kyrgyzstan’s foreign ministry has not responded to requests for comment.
EU ambassadors will continue negotiations this week, aiming to finalize the sanctions package by 24 February, though discussions may extend if more time is needed to secure a comprehensive deal.
