EU targets Russian oil in tough new Ukraine war sanctions
The 18th round of economic measures from Europe against Russia since its 2022 invasion comes as allies hope US President Donald Trump follows through on his threat to punish Moscow for stalling peace efforts.
"The EU just approved one of its strongest sanctions packages against Russia to date," EU foreign policy chief Kaja Kallas said.
"The message is clear: Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war."
Ukrainian President Volodymyr Zelensky hailed the sanctions' adoption as "essential and timely".
The new measures were approved after Slovakia dropped a weeks-long block following talks with Brussels over separate plans to phase out Russian gas imports.
Kremlin-friendly Slovakian leader Robert Fico -- whose country remains dependent on Russian energy -- dropped his opposition after getting what he called "guarantees" from Brussels over future gas prices.
France's Foreign Minister Jean-Noel Barrot called the latest moves "unprecedented" and said that "together with the United States we will force (Russian President) Vladimir Putin into a ceasefire".
"We are keeping up the pressure on Russia," said German Chancellor Friedrich Merz.
But the Kremlin said it would seek to "minimise" the impact, and warned the measures would backfire on the EU.
As part of the new sanctions designed to sap Russia's war chest, the EU agreed to lower its price cap on Russian oil exported to third countries around the world, to 15 percent below market value.
That comes despite EU allies failing to convince Trump to go along with the plan.
The cap is a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries such as China and India.
Set at $60 a barrel by the G7 in 2022, it is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount.
The EU has largely already cut off its imports of Russian oil.
Under the new EU scheme -- which Brussels hopes will get G7 allies like Britain and Canada on board with -- the new level will start off at $47.60 and can be adjusted as oil prices change in the future.
EU officials admit that the scheme will not be as effective without US involvement.
- Tankers, refinery, banks -
In addition, officials said the EU is blacklisting over 100 more vessels in the "shadow fleet" of ageing tankers used by Russia to circumvent oil export curbs.
There are also measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online in the future.
Among other targets, sanctions will be placed on a Russian-owned oil refinery in India and two Chinese banks as the EU seeks to curb Moscow's ties with international partners.
There is also an expanded transaction ban on dealings with Russian banks and more restrictions on the export of "dual-use" goods that could be used on the battlefield in Ukraine.
The latest round of EU measures comes after Trump on Monday threatened to hit buyers of Russian energy with massive "secondary tariffs" if Russia doesn't halt the fighting in 50 days.
The move from Trump represented a dramatic pivot from his previous effort of rapprochement with the Kremlin, as he said his patience was running out with Putin.
The multiple rounds of international sanctions imposed on Moscow in the three-and-a-half years since its invasion have failed so far to cripple the Russian economy or slow its war effort.
But Western officials argue that despite Russia's economy largely weathering the punishment to this point, key economic indicators such as interest rates and inflation are getting worse.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
6 hours ago
- Perth Now
Wall Street inches up amid Trump EU trade remarks
The S&P 500 and the Dow edged up in tepid trading as investors assessed President Donald Trump's latest comments on trade discussions with the European Union and his hints that a rate cut from the US Federal Reserve was imminent. Trump said the odds of a US-EU trade deal were "50-50" and suggested after a meeting with Fed Chair Jerome Powell that a rate cut might be on the horizon. A spate of upbeat second-quarter earnings also supported Wall Street's record run. In early trading on Friday, the Dow Jones Industrial Average rose 70.76 points, or 0.16 per cent, to 44,764.67 - creeping up towards its December 4 record high. The S&P 500 added 10.70 points, or 0.17 per cent, to 6,374.05, and the Nasdaq Composite gained 1.87 points, or 0.01 per cent, to 21,059.83. Expectations were rife that the European bloc would soon sign an agreement with Washington. Meanwhile, US negotiations with South Korea gathered momentum ahead of the August 1 deadline set for most countries as they scrambled to avoid Trump's steep import levies. A wave of trade agreements including pacts with Japan, Indonesia and the Philippines set all three major indexes on track for a strong weekly finish, if the gains hold. Tariffs have had only a small impact on inflation and the economy has not shown many negative effects from shifts in trade policy, according to Paul Ashworth, chief North America economist at Capital Economics. Because of this, he said, even a slight increase in inflation would likely be enough to keep the Fed from cutting rates again. Of the 168 companies in the S&P 500 that have reported earnings as of Friday, 79.8 per cent beat analyst expectations, according to data compiled by LSEG. However, there were a few setbacks during the week. Heavyweights Tesla and General Motors stumbled and were on track for their steepest weekly declines in nearly two months if losses hold. Tesla CEO Elon Musk warned of tougher quarters ahead amid shrinking US EV subsidies, while General Motors took a hit after absorbing a $US1.1-billion ($A1.7 billion) blow in its second-quarter earnings from Trump's tariffs. Intel dropped 9.0 per cent after the chipmaker forecast steeper third-quarter losses than the Street expected and announced plans to slash jobs. All eyes will be on the US Federal Reserve's monetary policy meeting next week, with bets indicating that policymakers are likely to keep interest rates unchanged as they evaluate the impact of tariffs on inflation. The central bank is under immense scrutiny from the White House, with President Trump leading a censure campaign against Chair Jerome Powell for not reducing borrowing costs, while often hinting that he would sack the top policymaker. In a surprise move, Trump escalated the pressure by making a rare visit to the Fed headquarters on Thursday, where he criticised its $US2.5-billion ($A3.8 billion) renovation project. According to CME's FedWatch tool, traders now see a nearly 61.8 per cent chance of a rate cut as soon as September. Among other stocks, Newmont added 7.4 per cent after the gold miner surpassed Wall Street expectations for second-quarter profit. Health insurer Centene posted a surprise quarterly loss, but its shares gained 3.0 per cent. Paramount Global rose 2.1 per cent after US regulators approved its $US8.4 billion ($A12.8 billion) merger with Skydance Media.
Daily Telegraph
6 hours ago
- Daily Telegraph
Campaigners say tanker carrying Russian oil to dock in WA
Don't miss out on the headlines from Breaking News. Followed categories will be added to My News. A tanker purportedly full of Russian oil is set to dock in Western Australia within days, despite sanctions being in place against Moscow, Ukrainian and anti-Russian oil campaigners According to DFAT, the 'import, purchase or transport' of several goods is prohibited 'if they were exported from, or originated in, Russia'. That includes oil and petroleum products. The ship Seferis left Sika in India two weeks ago full of oil from the Jamnagar refinery, and it is due to arrive in the outer-Perth suburb of Kwinana by 4am Sunday. The Jamnagar refinery is notoriously fed by Russian crude oil, with as much as 55 per cent of their 2025 stock coming from the European pariah. This means the imported oil, which originated in Russia, could end up fuelling Australian vehicles on the road. Anti-Russian oil campaigners allege this ship is full of covertly imported Russian oil The alarm has been raised about a 'loophole' that allows Russian oil to be bought and sold in Australia, with local campaigners and parliamentarians calling for immediate action. Independent federal MP Andrew Wilkie raised the issue in Question Time on Thursday, asking the Defence Minister Richard Marles 'Why are the loopholes in our sanctions so big you can drive a tanker through them?' 'In July, two vessels reportedly docked in Botany Bay, with some 175,000 tonnes of petrol from the Jamnagar refinery in India, which uses up to 55 per cent Russian oil,' Mr Wilkie said. 'So these vessels effectively carry some 90,000 tonnes of Russian-sourced petrol, paid for by Australians, which will help fund Putin's war in Ukraine.' Independent MP Andrew Wilkie questioned the government about the 'loophole'. Picture: NewsWire / Martin Ollman Mr Marles largely avoided the question instead focusing on the sanctions that had been put in place. 'Sanctions, which is the topic of the question the member has asked, is an important part of what we are putting in place to stand with Ukraine,' Mr Marles said. 'And our government will stand with Ukraine. 'I know the Australian people will stand with the people of Ukraine for as long as it takes for Ukraine to resolve this conflict on its terms.' The loophole has recently been closed in the European Union, which has banned the importation of petroleum products refined form Russian crude oil in its 18th sanctions package against Russia. Defence Minister and Deputy Prime Minister Richard Marles defended Australia's sanctions. NewsWire / Simon Bullard. The Australian Federation of Ukrainian Organisations has urged Australia to take similar action. 'This decisive action closes a glaring and deeply exploited loophole that has allowed Russian crude to enter global markets through refineries in third-party countries – undermining sanctions and fuelling the Kremlin's war machine. 'We urge the Australian government to take similar action and close this loophole in Australia's own sanctions regime. 'Since February 2023, Australia has imported an estimated $3.7bn worth of Russian crude, as a component in refined petroleum products from Indian refineries – sending around $1.8bn in tax revenue to the Kremlin. 'This flow of profits directly helps fund Russia's brutal war against Ukraine.' Originally published as Tanker carrying Russian oil set to dock in WA despite sanctions, campaigners say
News.com.au
7 hours ago
- News.com.au
Iran says it held 'frank' nuclear talks with European powers
Iranian diplomats said they held "frank and detailed" nuclear talks on Friday with counterparts from Germany, Britain and France, who have threatened to trigger sanctions if Tehran fails to agree a deal on uranium enrichment and cooperation with UN inspectors. The meeting in Istanbul was the first since Israel launched an attack on Iran last month targeting key nuclear and military sites, sparking a 12-day war and leading Tehran to pull away from working with the UN watchdog. The European diplomats were seen leaving the Iranian consulate shortly before 1100 GMT after spending several hours inside. Israel's offensive -- which killed top commanders, nuclear scientists and hundreds of others and in which residential areas and military sites were struck -- also derailed US-Iran nuclear talks that began in April. Since then, the European powers, known as the E3, have threatened to trigger a so-called "snapback mechanism" under a moribund 2015 nuclear deal that would reinstate UN sanctions on Iran by the end of August. The sanctions trigger expires in October, and Tehran has warned of consequences should the E3 opt to activate it. Iran's Deputy Foreign Minister Kazem Gharibabadi, who attended the talks alongside senior Iranian diplomat Majid Takht-Ravanchi, wrote on X he had used the meeting to criticise the European stance on the 12-day conflict with Israel. He said the snapback mechanism had also been discussed, adding: "It was agreed that consultations on this matter will continue." Before the talks, a European source said the three countries were preparing to trigger the mechanism "in the absence of a negotiated solution". The source urged Iran to make "clear gestures" on uranium enrichment and the resumption of cooperation with the UN nuclear watchdog. - 'Common ground' - Gharibabadi warned earlier in the week that triggering sanctions -- which would deepen Iran's international isolation and place further pressure on its already strained economy -- would be "completely illegal". He accused European powers of "halting their commitments" under the 2015 deal, which the United States unilaterally withdrew from in 2018 during President Donald Trump's first term. "We have warned them of the risks, but we are still seeking common ground to manage the situation," said Gharibabadi. Iranian diplomats have previously warned that Tehran could withdraw from the global nuclear non-proliferation treaty if sanctions were reimposed. Israeli Foreign Minister Gideon Saar has urged European powers to trigger the mechanism. Israel's June 13 attack on Iran came two days before Tehran and Washington were scheduled to meet for a sixth round of nuclear negotiations. On June 22, the US joined Israel's offensive by striking Iranian nuclear facilities at Fordo, Isfahan, and Natanz. Before the war, the US and Iran were divided over uranium enrichment -- Tehran describing it as a "non-negotiable" right, Washington calling it a "red line". The International Atomic Energy Agency (IAEA) says Iran is enriching uranium to 60 percent purity -- far above the 3.67 percent cap under the 2015 deal and close to weapons-grade levels. Tehran has said it is open to discussing the rate and level of enrichment, but not the right to enrich uranium. A year after the US withdrew from the nuclear deal, Iran began rolling back its commitments, which had placed restrictions on its nuclear activities in exchange for sanctions relief. Israel and Western powers accuse Iran of pursuing nuclear weapons, a charge Tehran has repeatedly denied. - 'New form' - Iran insists it will not abandon its nuclear programme, with Foreign Minister Abbas Araghchi describing the position as "unshakable". Though he claimed enrichment had come to a halt because of "serious and severe" damage to nuclear sites caused by US and Israeli strikes. The full extent of the damage sustained in the US bombing remains unclear. Trump claimed at the time the sites had been "completely destroyed", but US media reports based on Pentagon assessments cast doubt on the scale of destruction. Since the 12-day war, Iran has suspended cooperation with the IAEA, accusing it of bias and failing to condemn the attacks. Inspectors have since left the country but a technical team is expected to return in the coming weeks after Iran said future cooperation would take a "new form". Israel has warned it may resume strikes if Iran rebuilds facilities or moves toward weapons capability. Iran has pledged a "harsh response" to any future attacks. bur-jxb/rmb
