EU envoys agree 15th sanctions package on Russia

EU ambassadors have agreed a15th sanctions package against Russia, the trade bloc's Hungarian presidency said Dec. 11, in a move set to expand the roster of blacklisted tankers transporting Russian oil.

The adopted sanctions seek to "constrain the activity of additional vessels of third states" operating to contribute or support Russia's actions against Ukraine, the presidency said.

"The package adds more persons and entities to the already existing sanctions list, and targets entities in Russia and in third countries other than Russia that indirectly contribute to Russia's military and technological enhancement through the circumvention of export restrictions," it said.

There was no mention of whether an EU exemption allowing the Czech Republic to import fuels made from Russian crude in Slovakia was extended.

Lawmakers at the European Commission sent a proposal for the trade bloc's 15th sanctions package to the European Council for approval last month.

The proposal was expected to widen the list of sanctioned companies and individuals and extend a blacklist of tankers involved in shipping Russian oil as part of attempts to strengthen compliance with the G7's so-called "price cap" on Russian oil.

More than 80% of Russia's seaborne crude exports last month were lifted by tankers not flagged, owned or operated by companies based in the G7, the EU, Australia, Switzerland and Norway, and not insured by Western protection and indemnity clubs, according to data from S&P Global Commodities at Sea and Maritime Intelligence Risk Suite.

Russia's growing shadow tanker fleet has come as discounts for Russia's crude shrink from record levels of $40/b to Dated Brent in 2022 after Russia's invasion of Ukraine. Attempts by Western authorities to clamp down on the shadow tankers able to sidestep the G7-led price cap on Moscow's oil have done little to help devalue the exports, with Russia's flagship Urals crude mostly trading above the cap since July 2023.

Differentials for Russia's Urals were stable in November at a discount of around $12.25/b to Dated Brent. Platts, part of Commodity Insights, assessed Urals on a FOB Primorsk basis at a $12.55/b discount to Dated Brent on Dec. 10, up from a post-Ukraine invasion low of $11.9/b on Aug. 7.