Russia's oil price ceiling to be replaced by a ban on maritime services – Bloomberg

The European Union is considering a proposal to replace its price ceiling on Russian oil with a ban on maritime services as part of the bloc's new sanctions package, reports Bloomberg, citing its sources with knowledge of the discussions.

According to them, this move, if supported by EU member states, could prohibit European companies from providing the relevant services, such as insurance and transportation, that are needed to transport Russian oil, regardless of its price.

A complete ban could significantly strengthen the restrictions imposed on Russian oil and make it easier to enforce sanctions, the interlocutors added.

A spokesperson for the European Commission declined to comment.

Starting February 1, the price ceiling for Russian crude oil will drop to $44.1 per barrel. The mechanism for setting this price, which is reviewed every six months, is designed to be 15% lower than the average market price of Russian Urals crude.

EU member states were informed of the possible content of the new sanctions package, the 20th since Russia's full-scale invasion of Ukraine in 2022. The bloc plans to approve the package by the end of February.

Bloomberg's interlocutors noted that the adoption of these restrictions requires the support of all EU members, and several countries have already indicated that they are against replacing the price ceiling with a ban on maritime services.

In addition, the EU is expected to propose additional restrictions on Russian banks and Russian oil companies, as well as on cryptocurrency services and financial institutions in third countries that help Moscow circumvent the bloc's sanctions, the interlocutors added.

More shadow fleet vessels will also be added to the sanctions list.

In addition, the EU is considering using its anti-circumvention tool for the first time, which would lead to a ban on the export of machine tools and certain radio equipment to Kyrgyzstan, the interlocutors said.

They added that the proposed package would include new trade restrictions on more companies and goods needed by Russia for weapons production, as well as on imports of several Russian metals.

• On January 29, the EU's decision to add Russia to the bloc's "blacklist" for money laundering came into force.