Wed Sep 25 06:24:31 UTC 2024: ## Western Sanctions on Russian Oil: Effectiveness Debated, Enforcement Intensified

**Brussels, Belgium -** The European Union and 12 partner countries gathered in Brussels on Tuesday to assess the impact of Western sanctions on Russia and explore ways to bolster the G7 price cap on Russian oil. The meeting highlighted concerns about the effectiveness of the price cap, imposed in December 2022, which aims to limit Moscow’s war funding by restricting access to Western shipping and insurance for oil bought above $60 per barrel.

Despite the price cap, Russia has managed to circumvent the measures by building a shadow fleet of tankers, primarily older vessels with a higher risk of accidents. This has allowed Russia to sell oil at prices exceeding the limit, rendering the cap less effective than initially anticipated.

EU sanctions envoy David O’Sullivan, leading the discussions, acknowledged that “more needs to be done,” emphasizing the need for “relentless enforcement.” This sentiment is echoed by US officials who believe recent actions by Indian refiners have bolstered the mechanism’s effectiveness in reducing Moscow’s revenue for the Ukraine invasion.

To counter Russia’s circumvention tactics, Western powers have begun sanctioning vessels directly. The EU is also considering targeting specific financial institutions and the transit of products from southeast Asia through China that benefit Russia’s military. Ukraine’s presidential adviser, however, has labelled China as the “biggest problem” in enforcing the sanctions.

The meeting underscores the ongoing struggle to effectively sanction Russia and limit its financial resources for the war in Ukraine. While the G7 price cap has had some impact, Russia’s adaptability and the role of certain countries like China present significant challenges in enforcing the measures. The EU and its partners remain committed to tightening the noose on Russian oil exports, focusing on increased enforcement and targeting key actors involved in the circumvention of the price cap.

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