Brussels Considers Acting Without G7 Consensus
The European Union has made it clear it could move forward with a complete ban on maritime services for Russian oil tankers, even if a deal with G7 allies is not reached. Valdis Dombrovskis said the EU prefers coordinated action but will not hesitate to act independently. The goal is to approve the 20th sanctions package by 24 February, marking four years since Russia’s full-scale invasion of Ukraine.
If implemented, the ban would end the G7’s oil price cap within EU jurisdiction, preventing European companies from servicing Russian tankers regardless of the Urals crude price, which is currently set at $44.10 per barrel. Dombrovskis stressed that while alignment at the G7 level is ideal, Brussels is prepared to act on its own if agreement is not forthcoming.
Allies and Internal Concerns
At present, it is uncertain how many G7 members would follow the EU’s lead. United Kingdom, Canada, and Australia, which participates in the price cap coalition, confirmed awareness of the EU proposal and ongoing discussions with partners. Officials emphasized that collaboration is ongoing to increase economic pressure on Russia and target its energy revenues. United States and Japan have not commented publicly.
Within the EU, concerns have been raised by Greece, whose shipping industry worries the ban could boost competitors in India and China, strengthen Russia’s “shadow fleet,” and encourage deflagging, where vessels change registry to bypass restrictions. Swedish Finance Minister Elisabeth Svantesson noted that while broad alignment is preferred, the EU must take necessary action if needed.
Anti-Circumvention Measures and Kyrgyzstan
A key part of the sanctions package is the EU’s proposed activation of the Anti-Circumvention Tool for the first time. This measure would restrict sales of sensitive EU-made machinery and radios to countries at high risk of rerouting them to Russia.
Kyrgyzstan has come under scrutiny, as trade with the EU has surged from €263 million in 2021 to €2.5 billion in 2024, with more than half of exports being machinery and transport equipment. Brussels fears these goods could be diverted to Russia and used in military operations. Kyrgyzstan’s foreign ministry has not responded to requests for comment.
EU ambassadors will continue negotiations through the week, aiming to finalize the sanctions by 24 February, though the timeline may extend if additional discussions are required.
