EU Delays Russia Sanctions Amid US Pressure & New G7 Plans

EU Delays New Russia Sanctions Amid US Pressure

The European Union will delay formally submitting its latest round of proposed sanctions against Russia, according to a European diplomat. This delay follows demands from former US President Donald Trump that Europe take tougher measures, conditioning it on the US advancing its own sanctions.

The European Commission, the EU's executive arm, was scheduled to submit the 19th package of sanctions on Wednesday. However, the US pressure, culminating in the recent G7 meeting, has prompted the EU to reconsider its strategy.

US Pushing for Stricter Oil Sanctions

During the G7 meeting, the US pressured its allies to impose tariffs of up to 100% on countries purchasing Russian oil. This move aims to pressure Russia to enter negotiations to end the conflict in Ukraine. According to a source familiar with the matter, G7 officials are currently drafting a new set of sanctions and aim to finalize the text within the next two weeks.

Foreign media previously reported that the EU is considering sanctions on companies that facilitate Russian oil trade. Trump stated he was prepared to impose "significant" sanctions on Russian oil if European countries did so. India is the largest purchaser of Russian crude oil, a behavior the US administration sees as crucial for funding Russian President Vladimir Putin.

Scope of Proposed US Sanctions

The US proposal also seeks to target Russian oil companies and the networks that enable Moscow to transport and profit from crude oil. Although Trump has repeatedly ignored his set deadlines, and the Russian President has continued to show unwillingness to negotiate an end to the conflict, the former has so far not imposed direct sanctions on Russia. However, Trump has doubled tariffs on India to 50% due to their continued purchase of Russian oil.

Challenges Facing Europe

The US proposal has "kicked the ball into Europe's court." However, imposing tariffs on countries that purchase Russian oil would be difficult for the EU, as many countries, including Germany, rely on these export markets. The EU has postponed phasing out Russian natural gas until after 2027 and has granted landlocked countries like Hungary and Slovakia temporary exemptions from Russian oil sanctions.

Despite this, after sanctions took effect in 2022, the share of Russian crude oil in EU crude oil imports fell from 27% before the conflict to around 3% last year. Earlier, media reported that the EU's 19th sanctions package against Russia is considering targeting about six Russian banks and energy companies, as well as Russian payment and credit card systems, cryptocurrency exchanges, and further restrictions on the country's oil trade.

Geopolitical and Economic Analysis

The current situation presents a significant challenge to the EU. On one hand, it faces pressure from the US to take a tougher stance against Russia. On the other hand, many of its members are dependent on Russia for energy, making it difficult to completely cut ties. The delicate balance between geopolitical and economic interests will determine the course of future sanctions.