France and Germany Lead EU Push to Sanction Russian Oil Majors
France and Germany are urging the European Union to target major Russian oil companies as part of the bloc’s next package of sanctions, according to proposals seen by Bloomberg.
“Additional steps should be considered, in particular listing oil majors such as Lukoil or Litasco, in order to put maximum pressure on Moscow’s capacity to export its oil,” a document backed by Europe’s two largest economies said.
The EU is currently discussing the content of its 19th package of sanctions, which includes proposed measures to target Russian banks and the country’s energy trade, Bloomberg reported earlier.
Representatives for the French and German governments declined to comment on the joint proposal.
Any EU sanctions would require the backing of all member states, and several nations, including Hungary, have blocked attempts to target energy companies in the past.
As part of the measures, the bloc is also looking to add to its existing sanctions on Russia’s shadow fleet of vessels that are used to move its oil as well as hit traders and other actors in third countries that enable the trade.
The EU is hoping to coordinate some of those sanctions and their enforcement with the US. A delegation of EU officials is in Washington this week to meet US counterparts and discuss the potential for joint action.
In addition to further levies on buyers of Russian oil, the US has been weighing sanctions on Moscow’s covert fleet of oil tankers and energy firms Rosneft PJSC and Lukoil PJSC as part of a menu of potential options, Bloomberg previously reported.
Any US action would ultimately depend on US President Donald Trump, who has so far refrained from sanctioning Russia directly despite skating through several self-imposed deadlines and Vladimir Putin’s continued reluctance to negotiate an end to the war. Trump has, however, doubled tariffs on India to 50% over its continued purchase of Russian oil.
Berlin and Paris also want the EU to increase restrictions on financial and logistical schemes used by Russia to circumvent the bloc’s sanctions. As the Russian economy shows increasing signs of strain, several EU capitals have also urged the bloc to increase sanctions on civilian economic sectors and firms in Russia that are used to supply military industry.
The EU is expected to formally propose the package of measures in the coming days.
Source : Bloomberg
