BRUSSELS, BELGIUM – JUNE 15: Flags are places at EU Council Building prior to the meeting of U.S President Joe Biden, European Council President Charles Michel and President of the European Commission, Ursula von der Leyen for US-EU Summit in Brussels, Belgium on June 15, 2021. (Photo by Dursun Aydemir/Anadolu Agency via Getty Images)
Dursun Aydemir | Anadolu Agency | Getty Images
LONDON — The European Union is working with the U.S. as it prepares to announce its latest round of sanctions on Russia, sources told CNBC.
Despite diplomatic efforts over the summer, Russia’s more than three-year-long war in Ukraine is not showing any signs of coming to an end. In fact, Moscow has recently stepped up its offensive and on Sunday launched its biggest air attack on Ukraine, hitting a key government building.
European officials are now working on their 19th package of sanctions against Moscow, with one EU official, who did not want to be named as the measures are not yet finalized, telling CNBC these will be presented at the “end of the week [or] early next week.” The package will then have to be formally approved by the 27 members of the EU.
The European Commission and member states started informal discussions about the measures over the weekend, and a delegation of EU officials also traveled to Washington D.C. to coordinate energy-related measures with the Trump administration.
“It is clear that energy dependency on Russia will be targeted more vehemently,” a second EU official, who did not want to be named due to the sensitivity of the topic, told CNBC. “The Commission will work with the U.S. on this, especially on the Druzhba pipeline,” they said, referring to the transit pipeline that delivers Russian oil to Hungary and Slovakia, two EU member states with close links to the Kremlin.
U.S. involvement
One key consideration for Europe is potential sanctions on countries that buy Russian energy, including China.
“This is the big question,” the first EU official said, adding that for the moment it is unclear whether the bloc will move in this direction.
The European Union has previously sanctioned some Chinese banks for enabling the circumvention of measures imposed on Russia.
The FT reported Monday that European officials are considering secondary sanctions against China, a major buyer of Russian oil and gas.
The U.S., meanwhile, recently imposed tariffs on India for buying energy from Moscow.
The first EU official said the U.S. is, for now, “focused on pushing us to phase out Russian oil and gas faster than the current deadline.” The bloc is currently aiming to end its purchases of Russian oil by 2028.
As part of a recent trade agreement between the EU and the United States, the 27-member state bloc agreed to purchase $750 billion of American energy.
The EU’s latest package of sanctions against Moscow is also expected to see more Russian vessels listed as part of its “shadow fleet,” and to limit the movement of Russian diplomats and tourists.
