Brussels, Belgium, Belgium – June 15: The flag is located in the EU Council building before the meeting of President Charles Michel, President of the Council of Europe, President of the European Commission, President of the US-EU Summit held in Brussels, Belgium on June 15, 2021.
Dursun Aydemir | Anadoru Agency | Getty Images
LONDON – The European Union is working with the US as it prepares to announce its latest sanctions on Russia, sources told CNBC.
Despite summer diplomatic efforts, Russia shows no signs of ending a three-year war in Ukraine. In fact, Moscow has recently stepped up its attack, launching its biggest air force attack on Ukraine on Sunday, striking major government buildings.
European authorities are currently working on the 19th sanctions package against Moscow, with one EU official not wanting to name it because the measures have not yet been finalized. The package must be officially approved by 27 members of the EU.
The European Commission and member states began informal discussions on weekend measures, and a delegation of EU officials also traveled to Washington, D.C., coordinating energy-related measures with the Trump administration.
“It’s clear that energy dependence on Russia will be targeted more vigorously,” the second EU official, who doesn’t want to name it because of the topic’s sensitivity, told CNBC. “The Commission will work with the US on this, especially in the Durzvah pipeline,” they said, referring to the transport pipeline that will deliver Russian oil to two EU member states with close links with the Kremlin.
Our involvement
One important consideration in Europe is the potential sanctions on countries that purchase Russian energy, including China.
“This is a big problem,” the first EU official said, adding that it is unclear at this point whether the bloc will move in this direction.
The European Union has previously approved several Chinese banks for allowing the measures imposed on Russia to be diverted.
The FT reported Monday that European officials are considering secondary sanctions against China, the leading buyer of Russia’s oil and gas.
Meanwhile, the US recently imposed tariffs on India to buy energy from Moscow.
The first EU official said the US is currently “focusing on urging Russia to phase out oil and gas faster than the current deadline.” The Bullock is currently aiming to end Russian oil purchases by 2028.
As part of a recent trade agreement between the EU and the US, the 27-member state bloc has agreed to buy $750 billion in American energy.
The EU’s latest sanctions package against Moscow is also expected to increase the number of Russian vessels listed as part of the “Shadow Fleet” and limit the movement of Russian diplomats and tourists.
