EU, G7 Tread Carefully on Russian Oil Ban

The European Union is contemplating a complete ban on maritime services supporting Russia's seaborne crude oil exports. However, coordination with fellow G7 nations is essential before this decisive move, according to the EU's sanctions envoy.

Originally proposed on February 6 by the European Commission, the ban far exceeds previous EU sanctions, targeting Russia's significant income source fueling its war in Ukraine. David O’Sullivan, speaking at a news conference in Bishkek, emphasized the EU's current focus on maintaining a recently reduced oil price cap, although a maritime services ban remains a favored strategy requiring G7 consensus.

Russia's reliance on primarily Western tankers, particularly from Greece, Cyprus, and Malta, underscores the ban's potential impact, notably on India and China-bound oil shipments. However, specifics on implementing the ban, including its potential extension to refined products, remain undecided. While the U.S. prefers asset freezes for Russian oil giants Rosneft and Lukoil, its stance on the comprehensive banning measures is still a pivotal factor in EU deliberations.