Restrictions on aluminum and LNG imports: EU working on 16th package of sanctions against Russia

The European Union is considering new sanctions on Russian aluminum and liquefied natural gas (LNG) imports as part of its 16th sanctions package against Russia, Bloomberg reported, citing informed sources.

The proposed measures, which will be part of the EU's 16th sanctions package, include restrictions on dozens of vessels from Russia's shadow fleet of tankers transporting oil, as well as further export controls on goods used for military purposes.

Additionally, the EU plans to disconnect more banks from the international SWIFT payment system.

The restrictions on aluminum will be gradual, with the timelines and scope yet to be determined. The phase-out of Russian LNG could be implemented either as a sanction or as part of a roadmap that the EU's executive arm is set to present next month.

While several countries are pushing for a ban on Russian gas imports, the bloc still needs to decide whether to rely on sanctions to make it legally binding, use rules as part of a roadmap, or combine both approaches, according to the sources.

The European Union is also considering proposals to list more companies in third countries, including China and the UAE, that help Russia acquire technologies used in weapons, as well as restrictions on the Russian transportation sector.

Additionally, the EU aims to close more loopholes that allow Russia to circumvent existing restrictions and introduce higher tariffs on agricultural products and fertilizers in parallel with the new sanctions package.

• On January 13, Reuters reported that Baltic and Northern European countries called for lowering the price cap on Russian oil to reduce Russia's "single most important source of revenue."
• Ukraine supported the call to lower the price cap on Russian oil. The McFaul-Yermak Group proposes setting the limit at $30 per barrel.