The European Council on Monday adopted another package of sanctions against Russia and Russia-linked entities over the war in Ukraine, including oil tankers.
The 15th package of restrictive measures by the European Union over the Russian invasion “targeted primarily Russian defense companies and shipping companies responsible for the transportation of crude oil and oil products by the sea, providing important revenues to the Russian government”, a Council statement said.
“The Council is adding further vessels to the list of those subject to a port access ban and ban on provision of a broad range of services related to maritime transport”, added the statement on the Council’s website.
These vessels breached the Group of Seven’s price cap on Russian crude and oil products, participated in the Russian energy trade, transported military equipment for Russia or transported stolen Ukrainian grain, according to the statement.
“52 vessels originating from third countries were targeted today on these grounds, bringing the total of designated vessels to 79”, the Council said.
The European Commission said separately, “This targeted approach by the EU increases the cost for Russia to use such vessels as they are no longer able to do business-as-usual in the EU or with EU operators”.
“It also reduces the number of vessels in Russia’s shadow fleet that are able to carry Russian crude oil”, the Commission added.
“Importantly, today’s listings also tackle the serious maritime safety and environmental risks posed by the often old and underinsured vessels of the shadow fleet”.
On Sunday, storm damage to two tankers resulted in an oil spill in the Black Sea, Russian government-run news agency TASS reported, citing the Federal Agency for Sea and Inland Water Transport.
Vladimir Slivyak, co-director of Russian non-governmental organization Ecodefense, said in a statement issued by Germany-based environmental non-profit Urgewald about the new sanctions package, “These often very old and inadequately insured ships are a ticking time bomb for Europe’s seas and coasts”.
“If they are not stopped, an oil spill in the Baltic Sea, the North Sea or the Mediterranean is only a matter of time”, Slivyak said.
Urgewald energy campaigner Sebastian Rötters said in the statement, a copy of which was sent to Rigzone, “Expanding sanctions make sense, but they still amount to nothing more than pinpricks against Russia’s fossil fuel export operations”.
“The number of sanctioned oil and LNG tankers is simply too small to noticeably curtail Russia’s exports”, Rötters added. “The Russian shadow fleet is several hundred ships strong”.
Additionally, for the first time, the EU is imposing “fully-fledged sanctions (travel ban, asset freeze, prohibition to make economic resources available) on various Chinese actors supplying drone components and microelectronic components in support of Russia’s war of aggression against Ukraine”, the Council said.
North Korea’s defense minister and general staff deputy chief have also been added to the sanctions list.
Thirty-two entities have been added for “directly supporting” Russia in the war including by procuring items for military operations such as missiles and unmanned aerial vehicles. Some of these entities are based in China, India, Iran, Serbia and the United Arab Emirates. “They will be subject to tighter export restrictions concerning dual-use goods and technologies, as well as goods and technology which might contribute to the technological enhancement of Russia’s defense and security sector”, the Council said.
Concurrently the Council prohibited the recognition of Russian court rulings on lawsuits involving EU companies and their Russian counterparts.
“These rulings have been preventing the opposing party from commencing or continuing a proceeding in a jurisdiction other than Russia (anti suit injunctions) in clear violation of established international principles and practices, and have often resulted in disproportionately high financial penalties for European companies”, the Council said. “The new measure prevents those penalties from being executed against EU operators in Europe”.
Furthermore the Council allowed the release of cash held by EU central securities depositories (CSDs) “in light of increasing litigation and retaliatory measures in Russia that result in the seizing of assets of CSDs in the EU”.
“Thanks to this derogation CSDs will be able to request competent authorities of the Member States to unfreeze cash balances and use them to meet their legal obligations with their clients”, the Council added.
The Council also extended deadlines for certain derogations for divestments by EU firms in Russia. “Because of the risks of maintaining business activities in Russia, EU operators should consider winding down businesses in Russia and/or not to start new businesses there”, it said.
Source: by Jov Onsat for Rigzone Staff