The European Union is having an internal debate among member states over the next sanction package against Russia, with some countries unwilling to accept some measures, deemed too complicated and with high-chance of backfiring against EU trade.
The most contentious of this measure was dubbed the “No Russia clause”. It will force EU companies to add a re-export prohibition on all goods that the European Commission listed. The list includes more daily use items than possible military use ones.
According to six sources listed by Reuters, some member states are against the proposal. It is not clear at the moment which countries are against the measure. A new version of the proposal that was presented Tuesday, the EU added an exemption for goods that have personal use. This proposal is an attempt to close a potential abuse happening at the border with Russia, where together with big items, even personal goods like toothpaste has been confiscated by border guards.
Another proposal that does not have a majority support from member states involves a required EU authorisation for funds transfers by Russian entity or resident out of the EU. The proposal was deemed too burdensome.
Other topics, like an indirect ban on Russian diamond imports or a better oil price cap, are still under review, as the EU is waiting for G7’s technical direction on the issue. Both the EU and the G7 want to tighten the oil price cap, as Russia is using a “shadow fleet” of tankers to rise its oil profits.
The sanction package will be the twelfth against Russia since it started its war against Ukraine in 2022.