A Blow to Banks and Metals: Bloomberg Reports on New EU Sanctions Package Against Russia
Date: 2025-01-29 Author: Кирило Загоруйко Categories: ECONOMY
The European Union is proposing a new package of sanctions against the Russian Federation. The restrictions include disconnecting about 15 Russian banks from the SWIFT banking system and a number of other measures.
Bloomberg writes that the package, which was distributed among member states, also proposes measures against more than 70 "shadow fleet" vessels involved in transporting Russian oil. In addition, it is proposed to introduce a phased ban on imports of Russian aluminum.
The sanctions package will allow European buyers to import Russian metal under a quota system for one year before a full ban comes into force, the sources said. According to them, the plans will require support from all EU member states and may change before they are officially proposed to members.
Calls for the EU to ban Russian aluminium have been going on since the invasion of Ukraine, and Russian supplies to the bloc have been falling steadily as producers look for alternative suppliers. However, some buyers and EU member states have so far resisted such measures, arguing that some key products would be difficult to replace in full.
The EU is not certain to agree to the package of measures, which would be the 16th against Russia, with Budapest increasingly resistant to additional sanctions on Moscow.
Pressure has mounted in recent months to take tougher action against the Russian steel sector.
The EU imported about 320,000 tonnes of unwrought aluminium from Russia in the first 11 months of 2024, accounting for 6% of total imports, according to UN Comtrade data. Meanwhile, supplies to China have risen sharply.
The EU has previously considered adding LNG to the list of restrictions, but this is likely to be done as part of a roadmap to phase out the commodity rather than sanctions.
The EU also proposed this week to impose tariffs on the remaining agricultural products from Russia and Belarus that are not yet subject to tariffs, as well as on some nitrogen fertilizers.
