The European Commission adopted the twelfth package of sanctions against Russia in the context of the war in Ukraine. For the first time, Brussels has encountered diamonds, whose lucrative exports have been forgiven until now. But above all, the new package aims to close loopholes in oil restrictive measures that allow Moscow to continue exporting crude oil with less impact on its revenues.
According to a recent study, in fact, the double grip of the embargo on imports and the ceiling on the price of oil caused a loss of sales of Russian companies by only 14%, or 34 billion euros. The evasion of sanctions occurred both on imports, with many European countries able to continue purchasing crude oil derivatives, and on the price ceiling, which was exceeded thanks to the “ghost” ship system that allowed crude oil exports to the world. By selling Russian oil under another flag.
To close these gaps, the Commission has proposed introducing stronger compliance rules to support the enforcement of the oil price cap and prevent fraud. Additionally, a strengthened information sharing mechanism will allow for better identification of ships and organizations engaging in deceptive practices such as ship-to-ship transfers used to conceal the origin or destination of cargo. Finally, a special embargo was imposed on liquefied oil, one of the crude oil derivatives.
diamonds
The innovations of the package include stopping the import of processed (i.e. cut and/or polished) Russian diamonds to third countries, including jewelry containing diamonds of Russian origin. The embargo is expected to be phased in from March 1, 2024, and implemented by September 1, 2024. It is stated that the ban on Russian diamonds is part of the G7’s effort to develop an internationally coordinated diamond ban, aiming to deprive Moscow of an important resource. income.
military technologies
A special part of the package concerns so-called “dual-use” goods, that is, technologies that can be applied in civilian and military fields. The sanctions added 29 new organizations to the list of those who directly support Russia’s military and industrial complex in the war against Ukraine: these organizations will also be subject to more severe restrictions on the export of dual-use goods and technologies. As goods and technologies that can contribute to the technological development of Russian defense and security. Some of these 29 entities belong to third countries that circumvent trade restrictions. Others are Russian organizations involved in the development, production and supply of electronic components for the Russian military and industrial complex.
The measures require EU exporters to prohibit in their contracts “with exception” the re-export to Russia and the re-export for use in Russia of particularly sensitive goods and technologies that they have sold, supplied, transferred or exported to a third country. Partner States”. The article covers air force goods and weapons, as well as prohibited items used in Russian military systems on the battlefield in Ukraine or critical to the development, production or use of these Russian military systems.
Additionally, the package expands the list of restricted items that can contribute to the technological development of the military sector to include chemicals, lithium batteries, thermostats, DC motors and servo motors for unmanned aerial vehicles (UAVs, commonly called drones), machine tools. and machine parts. Finally, the EU has imposed further restrictions on the import of goods such as cast iron, copper wire, aluminum wire, foil, tubes and pipes, with a total annual value of 2.2 billion euros, which provide significant income to Russia. A new ban has been introduced on the import of liquefied propane with a 12-month transition period.
Finally, the Council decided to introduce some exemptions from restrictions on all entry into the country on the import of goods for personal use, such as personal hygiene items or clothing worn by passengers or in their luggage, and on vehicles with diplomatic plates. AB. Additionally, to facilitate the entry into the Union of EU citizens living in Russia, Member States may “allow the entry of their cars, provided that they are not for sale and are used strictly for personal use”.
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Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
