The EU's latest move in the oil sanctions war: a broad ban on shipping services for Russian crude. This strategy aims to disrupt the very infrastructure that enables Russia's oil exports, targeting not just ships and buyers but the essential services that make seaborne trade possible. The proposal would effectively sideline the G7's oil price cap, which has been criticized for its limited impact. By cutting off European firms from providing shipping, insurance, financing, and other maritime services, the EU aims to make Russian oil sales harder, riskier, and more expensive. This move is part of a broader Western strategy to increase pressure on Russia, with the US also announcing new sanctions on Iranian oil traders and shadow fleet vessels. The EU's 20th sanctions package since the invasion of Ukraine includes expanded measures against Moscow's maritime workarounds, adding 43 more vessels to the shadow fleet blacklist and targeting Russian banks and crypto firms. The plan also introduces new import bans on Russian metals, chemicals, and critical minerals. European Commission President Ursula von der Leyen justified these measures as necessary to push Russia towards serious peace talks, arguing that pressure is the only language the Kremlin understands. The EU's strategy is expected to push more Russian oil into discounted, high-friction channels, making it more challenging to manage. However, achieving unanimity among EU members remains a challenge, as the proposal still requires their approval.
