Germany and France are seeking to implement stricter European sanctions against Russia, particularly focusing on the energy sector, according to a policy document shared with other EU nations.
The two governments emphasized that Russian oil continues to be a primary source of funding for the Kremlin’s war in Ukraine.
The document highlights the need to target additional oil companies, such as Lukoil, as well as service providers linked to the Russian oil industry. This could involve companies responsible for exporting Russian oil to the EU or engaging in transactions involving Russian crude oil.
There is also consideration to expand the price cap mechanism to include European companies that transport refined products made from Russian oil via third countries.
Currently, sanctions are aimed at companies involved in shipping Russian oil above the price cap, including shipping firms and those providing insurance, technical support, financing, or brokerage services.
Berlin and Paris aim to close financial and logistical loopholes that allow Russia to evade existing sanctions. Proposed measures include imposing additional sanctions on more Russian banks and foreign institutions connected to the payment system of the Russian central bank.
The document indicates that approximately 250 small and regional banks are currently involved in international transactions supporting Russia’s military efforts.
Moreover, Germany and France are considering sanctions against players in the automotive, civil aviation, gold, machinery, and electrical engineering sectors tied to the Russian military-industrial complex, as well as the introduction of new import bans or higher tariffs.
These proposals will be included in the planning for the nineteenth package of European sanctions, which requires the approval of all member states. Notably, some countries, particularly Hungary, remain skeptical about new sanctions against Russia, presenting a challenge to securing consensus.