New Delhi [India], July 19 (ANI): The European Union’s recent sanctions on Russian oil, energy, banking and defence industries are aimed at degrading Moscow’s “war economy” while preserving global oil market stability, said Ambassador of the Delegation of the European Union to India Herve Delphin on Saturday.
Delphin, in a post on X, outlined the EU’s sanctions policy against Russia, which also targeted a refinery in India, emphasising that it does not prevent countries from purchasing Russian oil and thus avoiding disruptions to global supply.
The refinery in India is under Rosneft, a leader in the Russian refining industry, as one of its main shareholders.
As per the EU Envoy, the 18th sanctions package reduces the price cap on Russian oil from USD 60 to USD 47.6 per barrel and seeks to further curb revenues fuelling Russia’s military efforts in Ukraine.
“On EU sanctions policy on Russian oil: Doesn’t prevent anyone from buying oil from Russia –> so as not to disrupt the global oil market supply. Capping on Russian oil export prices –> a way of reducing the amount of revenues that feed/ are channeled into the Russian war economy. 18th package reduces the capping from USD 60 barrel to USD 47.6 barrel –> to reduce even further revenues Russia draws from oil export sales,” Delphin stated.
The EU Envoys’ clarification on the sanctions followed India’s response to the decision, in which New Delhi stated that it does not subscribe to any unilateral sanctions measures while emphasising the importance of avoiding double standards, especially in the domain of energy trade.
As per Delphin, the new cap, adjustable based on market reference prices, imposes a discount on Russian oil, benefiting buyers with stronger bargaining positions.
The EU has also banned third-country operators from exporting refined oil products made from Russian crude to the European market, closing a loophole that indirectly boosted Russian revenues.
The EU Envoy also noted that European citizens support this measure, despite potential higher import costs from alternative suppliers.
“The capping can fluctuate according to oil market reference price –> preserves elasticity of oil market for buyers. The capping amounts to imposing a discount on Russian oil –> benefit for the buyer who has a better bargaining position. Ban on export by third country operators to Europe of refined oil products made from Russian crude oil –> closing loophole to avoid European companies buy such products and indirectly add to Russian oil revenues. European citizens want this, even if it may result in higher import cost by buying from other suppliers,” the post added.
Additionally, the EU has sanctioned 450 shadow fleet oil tanker ships, targeting Russia’s attempts to circumvent sanctions through illicit transport networks, while highlighting the impact that the previously imposed sanctions have had in depriving Russia of EUR 450 billion, resources that would have otherwise supported its military efforts in Ukraine.
“Sanctions on shadow fleet oil tanker ships (port call and provision of services) –> closing a loophole that Russia uses to circumvent this sanction. 450 sanctioned shadow fleet ships by the EU. EU conducts its sanctions policy diligently & responsibly,” he noted in his post.
With oil constituting one-third of Russia’s revenues and 40 per cent of its public spending allocated to military efforts–equivalent to 6 per cent to 7 per cent of its GDP–the EU has reduced its dependency on Russian oil by 90 per cent, Delphin affirmed, while noting that the EU member states aim to eliminate all Russian energy imports by 2026-2027 to further starve Russia’s “war economy”.
“Sanctions aim at degrading the Russian war economy: 40% of Russian public spending allocated to finance the military effort — equivalent to 6 to 7% of the Russian GDP. Impact of imposed sanctions –> took away from Russia 450 billion euros which otherwise it would have had its disposal for the war. Oil represents 1/3 of total Russian revenues –> EU has already reduced its own dependency on Russian oil by 90%. EU Member States will cut off all Russian energy import completely by 2026 & 2027 to stop feeding revenues in Russian war economy,” the post read.
Addressing Russia’s aggression in Ukraine, Delphin condemned it as “illegal” and a “direct security threat” to the EU, its citizens, and territory.
“Deliberate Russian aggression on Ukraine is illegal. It causes massive suffering by targeting civilians,” he stated, reiterating the EU’s stance: “Mr Putin must stop this war; stop the carnage and engage in earnest in peace talks.” (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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