Greece and Malta have raised objections to the European Union’s plan to tighten sanctions on Russian oil, according to a Bloomberg report. As stated, the two countries appear to be the main obstacles to the proposal that would replace the existing price cap on Russian oil with a complete ban on services required for its transportation. The concerns of Athens and Valletta were expressed during a meeting of European Union ambassadors, where the Union’s latest sanctions package was presented. According to sources cited by Bloomberg, the two countries warned that such a policy change could have serious implications for both the European shipping industry and energy prices.
Russian oil: The European Commission’s proposal
The European Commission’s proposal aims to limit Russia’s revenue from oil exports by abolishing the price cap framework and introducing a stricter regime, with a ban on services such as insurance, financing and technical support for Russian oil transportation. However, according to the same sources, Greece and Malta express fears that such a measure could disproportionately harm the European shipping sector, in which they play a significant role. At the same time, the two countries requested clarifications regarding additional aspects of the plan, such as proposals for imposing sanctions on non-EU ports that handle Russian oil. They also expressed concern about measures to strengthen oversight of ship sales, which aim to reduce the number of vessels ending up in the so-called “Moscow fleet”.
Greece on Russian oil
According to the report, a spokesperson for the Greek government declined to comment on the information. From Malta’s side, government spokesperson in Brussels, Nestor Laiviera, said the country is participating in technical discussions aimed at ensuring the final package of measures will be applicable and effective. The proposed measure forms the core of the EU’s 20th sanctions package against Russia, however, as noted, the United States’ stance on this change remains unclear. The European Union had previously adopted bans on many services before introducing the price cap, which brings back into focus the debate about the effectiveness and side effects of sanctions.
