The European Union will not suspend sanctions against Russian diesel fuel and plans to consider a new, large-scale package of restrictions against Russia on 12 October. EU High Representative Kaja Kallas stated that concessions in the trade in petroleum products provide Moscow with additional revenue for its war against Ukraine. The statement came after the US granted a temporary exemption for certain transactions involving Russian diesel.
Briefly about the main points
- The EU will maintain restrictions on Russian diesel fuel.
- Callas linked Russia’s export revenues to the financing of the war.
- EU ministers plan to consider a new package of sanctions on 12 October.
- The draft list contains 827 companies and 744 individuals.
- The US has authorised certain transactions involving Russian diesel until April 2027.
Callas: Europe will not back down from economic pressure
High Representative EU Foreign Affairs and Security Policy Kaya Kallas On 10 October, she stated that Europe would not ease the pressure on Moscow. «Now is not the time to ease the pressure on Russia, and Europe will not do so», — she emphasised.
According to estimates Callas, Russia’s additional revenue from the export of petroleum products could be channelled towards prolonging the war against Ukraine. She also stated that Russian troops are attacking Ukrainian cities, whilst Moscow is stepping up its hybrid operations against EU member states and NATO allies.
According to the diplomat, more than 80 civilians have been killed in Ukraine over the past two days as a result of Russian strikes.
More than 1,500 individuals and companies could face sanctions
The EU Foreign Affairs Council meeting will take place in Luxembourg. Ministers will discuss Russia’s war against Ukraine, the escalation of Russian hybrid activities and further sanctions.
The Kyiv Independent, which has seen a draft version, reported that the European External Action Service is proposing to add 827 legal entities and 744 individuals to the list. These are predominantly companies from the Russian defence-industrial complex and individuals associated with them.
The restrictions may apply to shipbuilding, aviation, electronics and other industrial enterprises involved in the manufacture or repair of military equipment. The final composition of the list will depend on the decision of the Council of the EU.
The US authorisation for diesel-related operations is temporary
On 9 October, the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury issued General Licence No. 135. It authorises certain transactions involving the sale, delivery, unloading and import of diesel fuel of Russian origin, including to the US.
The authorisation will remain in force until 7 April 2027, but does not lift all US sanctions against Russia and maintains restrictions on certain accounts held by Russian state-owned financial institutions. The US President Donald Trump He explained the decision as a move to increase the supply of diesel and curb price rises.
President Volodymyr Zelenskyy criticised the easing of restrictions, stating that it could provide Russia with additional resources for aggression. The European sanctions list has not yet been approved: it is due to be considered on 12 October.
