By Jos Standerwick, CEO, Maritime London

 

Further sanctions against Russia are imminent as the EU announces plans for the 18 Sanctions Package against Russia and the US introduces a sanctions bill to Congress.

A draft bill proposed by well-known Republican Senator Lindsey Graham seeks to impose 500% tariffs on countries that buy Russian energy exports, with potential reductions for countries that import Russian oil but also provide material support to Ukraine. This exemption may offer some protection to EU member states still importing Russian energy. China and India currently account for circa 70% of Russian energy exports. The bill has garnered significant bipartisan support, and the latest projections suggest the bill will pass and be protected from a Presidential veto. 

Concurrently, the EU President, Ursula Von der Leyen and Vice President Kaja Kallas announced plans for the EU’s 18th Sanctions Package. In addition to restrictions on 22 further Russian banks, including a full transaction ban, the Commission has also announced its intention to lower the Crude price cap from $60 a barrel to $45 a barrel. It is hoped that the price cap change will be implemented in coordination with the G7 and is due to be discussed at the G7 Summit in Alberta, Canada, taking place between 15 and 17 June 15. The EU also intends to designate an additional 77 vessels believed to be involved in the trade of non-compliant Russian oil, bringing the total to over 400 vessels.

Speaking on the proposals, Von Der Leyen said; “Together with the United States, we can really force Putin to negotiate seriously. Every day Russia continues its war, the price must go up, and that is why we are proposing this 18th package of sanctions.”

It is expected that the 18th Sanctions Package will take effect by the end of the month.

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