EU Delays Russia Sanctions Proposal to Align With G-7 Priorities

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(Bloomberg) — The European Union will delay formally tabling its latest package of sanctions against Russia, according to a European diplomat, after US President Donald Trump demanded stronger European measures as a condition for the US to move forward with its own penalties.

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The European Commission, the EU’s executive arm, was due to present the proposal, it’s 19th, on Wednesday. On Friday, the US pressured its allies in the Group of Seven to impose tariffs as high as 100% on China and India for their purchases of Russian oil, as well as other measures, to push President Vladimir Putin to the negotiating table with Ukraine. 

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G-7 officials are currently working on a new sanctions package and are aiming to finalize a text in the next two weeks, according to a person familiar with the matter, who spoke on the condition of anonymity.

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The EU is weighing sanctioning companies in India and China that are enabling Russia’s oil trade, Bloomberg reported earlier.

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Trump said over the weekend that he’s prepared to slap “major” sanctions on Russian oil if European nations do the same. Purchases of Russian energy by China and India have been crucial to financing Putin’s war on Ukraine.

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The US proposal also seeks to target Russian oil companies and the networks that enable Moscow to move crude and profit from the trade.

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Trump has so far refrained from imposing direct sanctions on Russia, despite skating through several self-imposed deadlines and Putin’s continued reluctance to negotiate an end to the war. While Trump has doubled tariffs on India to 50% over its continued purchase of Russian oil, the US is also engaged in trade negotiations with both India and China. 

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The US proposal puts the ball in Europe’s camp. Tariffs on India and China would be difficult for the EU, with many countries including Germany relying on those export markets. But some of Trump’s demands were already part of the bloc’s plans. 

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The EU had delayed phasing out Russian gas until after 2027, and has given landlocked countries like Hungary and Slovakia temporary exemptions from its Russian oil sanctions. Still, crude from Moscow slumped to around 3% last year from 27% of EU imports before the war after sanctions took effect from 2022.

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The EU’s 19th sanctions package against Russia considers targeting about half a dozen Russian banks and energy companies, as well as Russia’s payment and credit card systems, crypto exchanges and further restrictions on the country’s oil trade, Bloomberg reported earlier.

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Politico reported earlier on the delay of the EU proposal. 

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