Brussels Ready to Move Without G7 Consensus
The European Union has indicated it may implement a full ban on maritime services for Russian oil tankers even if G7 allies fail to reach a joint agreement. Valdis Dombrovskis said Brussels prefers coordinated action but will not hesitate to move independently if necessary. The 20th package of sanctions is targeted for approval by 24 February, marking the fourth anniversary of Russia’s full-scale invasion of Ukraine.
If enacted, the measure would override the G7’s oil price cap within EU jurisdiction, barring European companies from servicing Russian tankers regardless of the price of Urals crude. The current cap stands at $44.10 per barrel. Dombrovskis noted that while alignment at the G7 level is preferable, the EU is prepared to act on its own if broader agreement is not reached.
Divisions Among Allies and Ongoing Negotiations
Uncertainty remains over how many G7 members are willing to follow the EU’s lead. United Kingdom, Canada, and Australia, which participates in the price cap coalition, said they are aware of the EU’s proposal and are consulting with partners. Officials stress continued collaboration to increase pressure on Russia, particularly targeting energy revenues. The United States and Japan have not responded publicly.
Within the EU, concerns have also emerged. Greece, with a major shipping industry, warned that a unilateral ban could boost competitors in India and China, empower Russia’s “shadow fleet,” and accelerate deflagging, where ships switch registries to avoid restrictions. Swedish Finance Minister Elisabeth Svantesson emphasized that while broader coordination is ideal, the EU must take necessary measures independently if needed.
Anti-Circumvention Tool Targets Kyrgyzstan
The sanctions package also proposes activating the EU’s Anti-Circumvention Tool for the first time, designed to restrict exports of sensitive EU-made equipment — including CNC machines and radios — to countries at high risk of rerouting them to Russia.
Kyrgyzstan has drawn scrutiny, as trade between the EU and the country has surged dramatically since the start of the war, jumping from €263 million in 2021 to €2.5 billion in 2024. More than half of those exports are machinery and transport equipment, which Brussels fears could be diverted to Russia and reused for military purposes. Kyrgyzstan’s foreign ministry has not responded to requests for comment.
EU ambassadors will continue negotiations throughout the week, aiming to finalize the sanctions package by 24 February, though discussions may extend if additional time is needed to secure an ambitious outcome.
