On Wednesday 4 May the President of the European Commission, Ursula von der Leyen, presented the sixth package of sanctions against Russia, in retaliation for the war in Ukraine, to the European Parliament.
As expected, Ms von der Leyen proposed an import ban on all Russian oil transported by sea or pipeline, both crude and refined. “We will phase out Russian crude oil deliveries within six months and refined products by the end of the year”, she said. The Commission’s proposal, obtained by EUROPE, mentions a deadline of eight months for these products.
It will also be prohibited to provide technical assistance, brokerage services, financing or financial assistance or any other service related to these prohibitions on the same schedule.
According to Ms von der Leyen, the orderly phase-out of crude oil will allow the EU and its partners to develop alternative supply routes and minimise the impact on world markets. “This will put maximum pressure on Russia while minimising the collateral damage to us and our partners around the world”, she said.
Reducing Europe’s dependence on Russian oil “will not be easy, some Member States are strongly dependent on Russian oil”, she warned.
During the discussion between the Member States’ ambassadors to the EU on Wednesday, several Member States reportedly expressed concern about the proposal.
Hungarian Foreign Minister Péter Szijjártó announced on Facebook that his country would not support the sanctions package as it stands, explaining that Budapest would need an exception for oil arriving via pipelines in order to approve the sanctions. According to him, it is not a question of political will, but of geographical and infrastructural reality.
However, the Commission’s proposal specifies that “due to the specific geographical situation of Hungary and Slovakia, which are landlocked countries, and their substantial dependence on crude oil imported via pipelines from Russia, a derogation from the ban may be granted by their national competent authority for a longer period of time, under certain conditions”. The Commission proposes that this derogation should end on 31 December 2023.
According to the document obtained by EUROPE, it also proposes to prohibit the transport to third countries of crude oil and certain petroleum products, originating in or exported from Russia, by any ship registered under the flag of a Member State or owned, chartered, operated or otherwise controlled by a national of a Member State or any legal person, entity or body which is incorporated or constituted under the law of a Member State. The provision, directly or indirectly, of technical assistance, brokering services, financing or financial assistance, or any other service related to the transportation to third countries of crude oil and such petroleum products originating in Russia or having been exported from Russia would also be prohibited.
The announcement of an embargo was welcomed by the European Parliament, which had called for such an embargo in a resolution adopted on 7 April (see EUROPE 12928/8).
Faced with Hungarian reluctance, Ukrainian Foreign Minister Dmytro Kuleba warned that if “any country in Europe (continued) to oppose an embargo on Russian oil, then there (would be) good reason to say that country is complicit in the crimes committed by Russia on Ukrainian territory”.
Exclusion of Sberbank from Swift
The President of the European Commission also announced that three major Russian banks, including Sberbank which represents 37% of the Russian market, could be excluded from the Swift system. The other two would be the Moscow Credit Bank and the Russian Agricultural Bank, according to Politico. “In doing so, we are hitting banks that are systemically critical to the Russian financial system and Putin’s ability to wage destruction. This will solidify the complete isolation of the Russian financial sector from the global system”, explained Ms von der Leyen.
The Commission is also proposing to ban the provision of European accounting, consultancy and communications services to Russian companies.
Ms von der Leyen also advocates blocking access to European airwaves for three major Russian state broadcasters. According to a document obtained by EUROPE, these are Rossiya RTR/RTR Planeta, Rossiya 24/Russia 24 and TV Centre International.
They would no longer be allowed to distribute their content in the European Union in any way, be it via cable, satellite, internet or smartphone applications. “We have identified these TV channels as mouthpieces, that amplify Putin´s lies and propaganda aggressively. We should not give them a stage anymore to spread these lies”, Ms von der Leyen said.
Sanctions against military personnel involved in “war crimes”
Finally, the EU should sanction 58 individuals and 17 entities. Among those subject to measures are high-ranking military officers and individuals who committed “war crimes” in Bucha and who are responsible for the “inhumane” siege of the city of Mariupol, according to the President of the European Commission. “We are sending another strong signal to all those who wage the Kremlin’s war: we know who you are and you will be held accountable for your actions” she warned.
The EU High Representative proposes to sanction 45 colonels, lieutenant colonels and commanders (majors) of the 64th separate motorized rifle brigade of the 35th Army of the Russian Federation, “who killed, raped and tortured civilians in Ukraine in Bucha”.
The EU could also sanction the Patriarch of Moscow and All Russia, Patriarch Kirill, who is a strong supporter of the war in Ukraine, and members of the families of oligarchs or those close to Vladimir Putin, including the children and wife of his press secretary, Dmitriy Peskov.
Moscow Duma member Sergey Savostynov, the Chairman and members of the ‘Salvation Committee for Peace and Order’ in Kherson, a “body collaborating with the Russian occupation in the Kherson Oblast”, the acting mayor of Melitopol, designated by the “Russian occupation forces”, Galina Danilchencko, and the head of the Russian Federal Service for the Supervision of Communications, Information Technology and Media, Andrei Lipov, may also be subject to measures.
The entities proposed by the EU High Representative work with the Ministry of Defence and the Russian armed forces.
Measures against Belarus
Furthermore, according to a proposal by the EU High Representative obtained by EUROPE, the Union could exclude Belinvestbank (Belarusian Bank For Development And Reconstruction) from the Swift system.
It could also subject new entities to restrictions on authorisations for the sale, supply, transfer or export of dual-use goods and technologies and goods and technologies that could contribute to the military and technological build-up in Belarus or the development of its defence and security sector.
Negotiations to continue on Thursday
After an initial discussion on Wednesday, the Member States’ ambassadors to the EU will discuss the sixth sanctions package again late on Thursday and, if necessary, on Friday morning. The aim is to have the sixth package adopted before the weekend. (Original version in French by Camille-Cerise Gessant with Damien Genicot and Mathieu Bion)