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  • The EC's Sixth sanctions package against Russia
    2022-05-10 hit 347

    The EC's Sixth sanctions package against Russia 


    Main points

    The European Commission announced the draft sixth sanctions package against Russia on Wednesday, May 4th, which includes measures to ban Russian crude oil imports. In her speech to the European Parliament, Ursula von der Leyen, the President of the European Commission, proposed a blanket ban on Russian crude oil and petroleum product imports that are transferred via pipelines and by means of maritime transport.

     

    The EU announced the draft sixth sanctions package against Russia that includes measures to ban Russian crude oil imports

    Provided by Korea International Trade Association Brussels Center and KBA Europe

     

    * The European Commission announced the draft sixth sanctions package against Russia on Wednesday, May 4th, which includes measures to ban Russian crude oil imports.

     

    - In her speech to the European Parliament, Ursula von der Leyen, the President of the European Commission, proposed a blanket ban on Russian crude oil and petroleum product imports that are transferred via pipelines and by means of maritime transport.

     

    On Monday, May 2nd, Robert Habeck, the German Federal Minister for Economic Affairs, expressed his support on implementing a ban on Russian crude oil and petroleum product imports, which led the European Commission to suggest the draft sixth sanctions package based on the items that agreed upon at the EU Committee of Permanent Representatives meeting on Tuesday, May 3rd.

     

    - However, in order to allow time for some EU member states to secure alternative supply sources and to minimize adverse impact on the global market, a ban on Russian crude oil and petroleum product imports will be implemented in a gradual manner. Crude oil import is scheduled to be ceased in six months’ time and petroleum product imports will be ceased by the end of this year.

     

    - Additionally, a special arrangement is given to Hungary and Slovakia to adjust to the ban on oil imports by postponing the date of implementing the ban, considering 100% of crude oil demand these two landlocked countries is supplied by Russia via pipeline.

     

    - Especially, claims were raised that point out a considerable amount of time and financial resources will be needed to perform refitting work and upgrades to Slovakia’s oil refinery facilities, which incorporated tailored designed and optimization procedures to treat Russian crude oil

     

    - Some raised concerns as the exception granted to Hungary and Slovakia will likely trigger Bulgaria and the Czech Republic to request for an exception as well to ban Russian crude oil imports for the time being, eventually undermining the initially intended effects of the sanctions against Russia.

     

    * Aside from sanctioning Russia crude oil imports, the European Commission is planning a move to make Sberbank subject to sanctions and the Credit Bank of Moscow (CBM), Russian Agricultural Bank (RAB) will be shut out of the SWIFT international payments system.

     

    - Additionally, sanctions on individuals will be expanded to include Russia propagandists, collaborators of mass killings and the leader of the Russian Orthodox Church, who described Putin’s leadership as a “miracle of God.”

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