The EU is weighing options to impose fresh sanctions on Russia’s oil industry and exports by sanctioning major energy firms and erecting more barriers to Russian oil trade, sources with knowledge of the plans told Bloomberg on Monday.
EU officials are set to travel to Washington this week to discuss potential coordinated joint EU-U.S. sanctions on Russia to force Vladimir Putin to negotiations on peace in Ukraine, according to Bloomberg’s sources.
On Sunday, U.S. Secretary of the Treasury, Scott Bessent, told NBC News the United States is open to partnering with Europe to impose more sanctions on countries that buy Russian oil to try to “collapse” the Russian economy.
“We are prepared to increase pressure on Russia, but we need our European partners to follow us,” Bessent said on NBC News’ “Meet the Press.”
“We are in a race now between how long can the Ukrainian military hold up versus how long can the Russian economy hold up,” Bessent added.
“And if the U.S. and the [European Union] can come in, do more sanctions, secondary tariffs on the countries that buy Russian oil, the Russian economy will be in total collapse, and that will bring [Russian] President [Vladimir] Putin to the table.”
The U.S. has pressured India over its continued purchases of Russian crude, but New Delhi has vowed to continue buying crude from Russia as it looks to cater to its interests.
The European Union, meanwhile, in July lowered the price cap on Russian crude oil to $47.60 from $60 per barrel, sanctioned another 100 shadow fleet tankers, as well as traders of Russian crude oil and a major customer of the shadow fleet – India-based Nayara Energy, which is 49% owned by Russia’s top oil firm, Rosneft.
While many analysts said that the 18th EU sanctions package against Russia from July would be moot without U.S. support, Nayara Energy has been hit hard by the EU measures against Russian oil customers.
By Michael Kern for Oilprice.com
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