Germany is promoting the eighth package of EU sanctions against Russia, German Foreign Minister Annalena Baerbock said today on the sidelines of a European Union (EU) meeting in the Czech capital, Prague.
The green policy indicated that proposals have been made but excused itself from giving details.
However, following the latest consultations in the Group of Seven (G7), which brings together the major democratic economic powers, the German government is likely to push, in particular, for the introduction of an international price cap for Russian oil.
The proposals in this regard envisage forcing Russia to sell oil to large buyers, such as India, at a considerably lower price in the future.
This is expected to lead to a easing of tensions in the markets. It is also intended that Russia will stop benefiting from the increases in oil prices and thus be able to fill its war coffers.
Under the proposal, to enforce the price cap, services important for the transportation of oil could be linked to compliance with the price cap.
For example, it could be decided that Western insurance services for the transport of Russian oil are not subject to sanctions regulations if the price cap is respected. Similar regulations could apply to shipping companies whose ships carry Russian oil.
Baerbock stressed today that it is important for Germany that sanctions for the Russian war of aggression against Ukraine can be maintained in the long term, which applies above all to the energy issue.
The head of German diplomacy alluded to the fact that other EU states have been demanding for months that all energy agreements with Russia be banned to deprive the state of an important source of income.
However, Germany, among others, rejects it because of the country’s continued dependence on Russian gas supply. It is also argued that such a move could cause much greater economic damage in the EU than in Russia.
The European bloc has so far launched seven packages of punitive measures against Russia following the invasion of Ukraine.
The most recent includes banning imports of Russian gold and tightening export controls on advanced technology and civilian goods for military use. Previous packages also contained harsh financial sanctions, as well as a sweeping oil embargo and ban on importing Russian coal.