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EU to impose sanctions affecting $5.3B in trade with Russia, Bloomberg

EU to impose sanctions affecting $5.3B in trade with Russia, Bloomberg Illustrative photo (Photo: Getty Images)
Author: Daria Shekina

The European Union is discussing a new round of sanctions that will impact trade with Russia, estimated at around 5 billion euros (5.3 billion dollars), accoridng to Bloomberg.

"The bloc’s 12th package since Russia launched its invasion last year will tighten restrictions on Moscow’s revenue sources and industry and curtail the Kremlin’s ability to feed its war machine," the article states.

It is noted that significant portions of the Russian economy have already been subjected to sanctions, prompting EU policymakers to close loopholes, implement targeted measures, and strengthen existing sanctions.

Bloomberg reports that the new set of proposed measures includes restrictions on the export of welding equipment, chemicals, and other technologies used for military purposes.

"Software license bans and restrictions on imports of a small number of processed metals and aluminum products, construction items, transportation-related goods and diamonds are also being considered," the material reads.

The EU is tackling the circumvention of sanctions through third countries

The proposed new measures for imports and exports regarding Russia will each amount to approximately 2.5 billion euros. The ban on diamonds depends on the agreement of the G7 on tracking precious stones across borders, which is expected to be agreed upon soon.

Bloomberg reports that Russia has found a channel for importing several machines used to produce ammunition and weapons.

The goal of the sanctions package is to deprive Russia of the ability to bypass existing bans through third countries where it gains access to components, technologies, and electronics used in weaponry.

The EU is also considering persuading companies to include clauses in their contracts with firms from third countries that prohibit the export of certain so-called "battlefield goods" to Russia.

Sanctions are also being strengthened in the oil sector

Since significant volumes of Russian oil are currently trading above the price cap of 60 dollars set by the G7, the EU and its allies are discussing more effective ways to enforce this measure.

The focus is also on the shadow fleet of hundreds of ships that Russia uses for transporting oil. Some of the discussed ideas include prohibiting operations with ships under sanctions, requiring notification during the sale of ships, and inserting contract clauses that prohibit deliveries above an established limit.

It is expected that the sanctions package will add more than 100 individuals and around four dozen legal entities to the list.

Sanctions against Russia

Since the start of Russia's full-scale invasion of Ukraine, the EU has imposed 11 rounds of sanctions. These sanctions include bans on the import of Russian oil, disconnection of several Russian banks from the SWIFT system, and numerous export restrictions.

Recently, it was reported that the G7 countries plan to announce a ban on the import of Russian diamonds by the end of October.

Ursula von der Leyen, the head of the European Commission, has also stated that the European Union is working on a 12th package of sanctions against Russia, which includes the proposal to ban diamonds.