EU and U.S. Coordinate Crackdown on Russia’s Oil Exports
The European Union is preparing its 19th sanctions package against Moscow, and this time Paris and Berlin want to strike directly at Russia’s most profitable sector: oil.
According to diplomats, the proposal would place Lukoil and its trading arm Litasco under new restrictions, part of a broader push to squeeze the Kremlin’s energy exports.
The package is still being drafted, but measures under discussion include tighter limits on Russian banks, restrictions on vessels in the so-called “shadow fleet” that evade the oil price cap, and penalties for intermediaries in third countries who help Moscow reroute crude. France and Germany argue that only by closing these loopholes can Europe curb the billions Russia still earns from energy sales.
Washington is moving in parallel. U.S. Treasury officials are hosting EU envoys in Washington this week to coordinate enforcement, with options ranging from secondary sanctions on buyers of Russian oil to expanded pressure on Rosneft and other state-backed producers.
Treasury Secretary Scott Bessent has urged Europe to match American efforts, while President Donald Trump has instead leaned on tariffs – doubling duties on Indian imports over New Delhi’s continued purchases of Russian crude.
Resistance is expected. Hungary has blocked energy sanctions in the past and is likely to push back again, but momentum in Brussels is building. Several member states also want to extend penalties to civilian industries that feed Russia’s defense sector, as well as Chinese companies supplying drones and other dual-use technology to Moscow.
For the EU, the message is clear: Russia’s economy has survived previous measures by exploiting loopholes. This round is designed to shut them all, from tankers and traders to chemicals and high-tech goods. Officials say a formal proposal could be presented within days.
Source: Bloomberg
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