EU proposes restriction on coal imports

LUXEMBOURG– The European Commission on Tuesday proposed prohibiting Russian coal as part of a brand-new round of sanctions versus the Kremlin for its unprovoked intrusion of Ukraine.

“We will impose an import ban on coal from Russia, worth 4 billion euros ($4.39 billion) per year. This will cut another important revenue source for Russia,” European Commission President Ursula von der Leyen revealed Tuesday afternoon, verifying an earlier report from CNBC.

It marks another substantial escalation in punitive procedures versus theKremlin Imposing sanctions on the Russian energy sector has actually been an obstacle for the bloc provided the high level of reliance that some member states have on the nation’s resources.

According to information from the European stats workplace, the EU imported 19.3% of its coal from Russia in2020 It imported 36.5% of its oil from the nation in the very same year, and 41.1% of its gas. However, installing proof of possible war criminal offenses devoted by Russian forces in Ukraine has actually pressed the commission to propose that coal be contributed to a 5th plan of sanctions versus Moscow.

“These atrocities can not and will not be left unanswered. The perpetrators of these heinous crimes must not go unpunished,” von der Leyen stated.

She included, “Clearly, in view of events, we need to increase our pressure further.”

The brand-new set of procedures will be gone over by European ambassadors onWednesday Final approval of the sanctions will not occur till after the talks.

The brand-new set of sanctions likewise consists of a complete deal restriction on 4 crucial Russian banks, amongst them VTB; a restriction on Russian vessels and Russian- run vessels from accessing EU ports; and targeted export restrictions worth 10 billion euros that include quantum computer systems and advanced semiconductors.

There has actually been growing pressure on Europe to target the Russian energy sector, especially as energy-importing nations continue to top up President Vladimir Putin’s war chest with oil and gas profits every day.

However, the concern divides the EU, with some countries encouraging of prohibiting Russian energy imports, while others compete that such a relocation would harm their own economies more than Russia’s.

France’s president, Emmanuel Macron, for example, stated Monday that the bloc ought to go on with sanctions versus Russian oil too in the wake of the reports of atrocities in the areas near to Ukraine’s capital of Kyiv.

Von der Leyen likewise stated Tuesday: “We are working on additional sanctions, including on oil imports, and we are reflecting on some of the ideas presented by the member states, such as taxes or specific payment channels such as an escrow account.”

These procedures, nevertheless, would just be activated at a later phase, if the war in Ukraine intensifies even more.

Germany’s foreign affairs minister, Annalena Baerbock, stated Tuesday that the EU will quickly end its purchases of Russian nonrenewable fuel sources completely, beginning with coal.

“The answer to these war crimes now with the fifth sanctions package at the European level must be that we, as a European Union, must completely phase out fossil energy dependence on Russia, starting with coal, then oil, and then gas,” she stated, according to Reuters.

Ending products of Russian gas would be the most difficult choice for the EU. Germany has actually hesitated to do it, however so too have countries such as Hungary and Austria.

“We wish to be, [in the] brief time, less depending on Russian energy imports to the European Union and Germany will support more sanctions on Russia,” German Finance Minister Christian Lindner informed CNBC in Luxembourg on Monday.

“We have to put more pressure on Putin and we have to isolate Russia — we have to cut all economic relationships to Russia, but at the moment it is not possible to cut the gas supplies.”