The European Council has adopted the European Commission’s proposal of eighth package of sanctions against Russia. Accordingly the Commission will extend the import ban to semi-finished steel imports and the export ban to coal exports from Russia. However, there is a transition period for the semi-finished steel imports; for slabs, until October 1, 2024 and for billet until April 2024, while coal export will be banned subject to a three-month wind-down period of existing contract signed before the ban was adopted
For slab imports, there will be import quotas of over 3.7 million mt per year, while for billet imports, the quota volume will amount to over 600,000 mt in total.
This package introduces new EU import bans worth €7 billion to curb Russia’s revenues, as well as export restrictions, which will further deprive military and industrial complex of key components and technologies and Russia’s economy of European services and expertise, while it also lays the basis for the required legal framework to implement the oil price cap envisaged by the G7, as SteelOrbis previously reported. Some other import restrictions include imports of Russian machinery and appliances, plastics, vehicles, textiles, footwear, leather, ceramics, certain chemical products, and non-gold jewellery.
Looking closely at the new package of sanctions, additional individuals and entities, the ones responsible for undermining Ukraine’s territorial integrity, have been sanctioned.
While the EU’s ban on importing Russian seaborne crude oil fully remains, the price cap on Russian oil for third countries, which will take effect after December 5, 2022 for crude and February 5, 2023 for refined petroleum products, would allow European operators to undertake and support the transport of Russian oil to third countries. This will help to further reduce Russia’s revenues, while keeping global energy markets stable through continued supplies.
The EU also has introduced a new listing criterion, which will allow it to sanction persons who facilitate the infringements of the prohibition against circumvention of sanctions.