Gas, gold and oil: EU prepares seventh package of sanctions against Russia

In the coming weeks, the European Union may propose a new – already the seventh – package of sanctions against Russia due to Russia’s special operation in Ukraine. This was reported by Bloomberg citing sources.

It is recorded that European countries are currently discussing mechanisms to limit the price increase of Russian oil. According to Bloomberg interlocutors, a decision on this issue in the near future seems unlikely.

Also, some EU members insist on expanding restrictions on gas supplied from Russia, but most member states are against it. The agency notes that it has previously reported on the possible inclusion of the EU in the new package of sanctions on restrictions on imports of Russian gold, changes in existing restrictions and the renewal of the “black list” of individuals and legal entities. .

The European Union began imposing new sanctions from the end of February, after Russia launched a special operation on Ukrainian territory on February 24. Since then, the EU has implemented six rounds of restrictions affecting the banking sector, energy carriers, government officials, the media and others.

The latest sanctions package came into effect in June. Brussels imposed a partial embargo on Russia’s oil imports. This measure has been coordinated by EU countries for more than a month. The restrictions also affected 65 individuals and 18 legal entities from Russia, including the National Settlement Deposit (acting as a payment intermediary for Eurobonds).

That same month, the Polish Ministry of Foreign Affairs announced the preparation of the seventh restriction package. In a comment to RIA Novosti, vice-president of the division Pavel Yablonsky said that restrictions on Russian gas and banks should be tightened.

According to him, sanctions should also affect technology exports to Russia. The diplomat also recommended not only freezing, but also confiscating Russian assets in the EU. He added that work on this issue continues.

On July 6, it became known that as part of the seventh package of sanctions, European countries may ban the import of Russian gold. This was stated by Charles Michel, president of the Council of Europe. At the end of June, this initiative was actively discussed on the sidelines of the G7 summit. In the latest statement, the G7 leaders pointed to the continuation of negotiations to limit the prices of Russian oil. It is planned to impose a ban on the transportation of fuel by sea if its cost exceeds the established limit.

Shortly before the summit, the British government announced that it was banning the import of Russian gold. The statement stated that the precious metal is one of Russia’s main export products. Also, gold is a popular investment among “oligarchs” to avoid the financial consequences of international sanctions.

The United States, Canada, and Japan also joined the measure. The ban does not apply to gold mined in Russia that was taken out of the country before 28 June.

At the same time, the sanctions against Russia caused an energy crisis in the EU. Thus, Gazprom reduced deliveries, as it was not possible to return the gas turbine sent to Canada for repair in a timely manner. Many German politicians urge local residents to consume less gas so that the country can conserve the accumulated resources as long as possible.

Russian authorities believe that the restrictive measures introduced are illegal. The Kremlin said the country faces “the largest sanctions burden in history”.

Russian President Vladimir Putin described the measures as “crazy and thoughtless” and described the sanctions as an “economic lightning bolt” against Russia. He also noted that sanctions and restrictions on Russian energy resources are more damaging to those who impose them:

“The result of such actions is an increase in gas prices in the spot market and an increase in the cost of energy resources for end consumers, including households,” he said.