The European Union and 12 partner nations gathered in Brussels to assess the impact of Western sanctions on Russia and explore ways to reinforce the G7’s price cap on Russian oil, according to a statement from the European Commission on Tuesday.
In late 2022, the G7 nations, alongside the EU, introduced a price cap on Russian oil. The measure prevents access to Western shipping services and insurance for oil purchased at more than $60 per barrel. The aim was to limit Russia’s ability to fund its war efforts in Ukraine.
However, the effectiveness of this policy has diminished since the end of last year, as Russia assembled a “shadow fleet” of older tankers, which are more prone to accidents. These vessels have allowed Russia to bypass the price cap.
In response, Western powers, including the EU, began sanctioning specific vessels over the past year in an effort to bring the oil trade back within the cap’s restrictions.
David O’Sullivan, the EU’s sanctions envoy, led the discussions during the Brussels meeting.
“This is our fourth meeting in Brussels… more needs to be done, and our focus now must be on relentless enforcement,” O’Sullivan said in the European Commission’s statement.
The Commission highlighted that nearly half of Russia’s federal budget has been spent on defense and security. It also noted that Russia is paying significantly higher prices for crucial supplies like semiconductors—130% more—and machine tools—300% more—largely sourced from Turkey and China, compared to pre-war prices.
Last week, O’Sullivan indicated that the EU might target specific financial institutions and scrutinize the movement of goods from Southeast Asia through China, which are reportedly being used by Russia’s military. Ukraine’s presidential adviser commented on Tuesday, identifying China as the “biggest problem.”
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