Ten European Union (EU) countries have proposed additional sanctions targeting Russian trade, particularly focusing on metals like aluminium, to further diminish Russia’s revenues and funding for its ongoing war in Ukraine, as revealed in a letter obtained by Reuters.
Key Highlights:
Current Sanctions Landscape:
The EU’s sanctions list currently includes over 2,000 individuals and entities, but notably excludes Russian metal producers such as Rusal and primary metals produced in Russia.
Countries Involved:
The letter, sent two weeks ago, is signed by several nations, including Poland, which will assume the EU presidency in January, and has been supported by Denmark, Czech Republic, Ireland, Estonia, Latvia, and Lithuania.
Sweden, Finland, and Romania also lend their support to the proposal.
Economic Rationale:
The letter emphasizes that metals represent a significant revenue source for Russia, second only to fossil fuels. It calls for additional import bans on these materials to further impact the Russian economy.
Upcoming EU Actions:
The EU Commission is expected to propose this new sanctions package in the second half of January, aiming for approval in February to coincide with the third anniversary of Russia’s invasion of Ukraine.
Market Adjustments:
While many EU metal consumers have sourced alternative supplies, such as copper from Peru and Serbia, the EU still imports substantial amounts of primary aluminium from Russia.
The United States and Britain have already banned imports of Russian-produced metals, while the EU has only restricted certain aluminium products, which account for less than 15% of its aluminium imports.
France’s Position:
France, which previously resisted the proposal, has indicated it will evaluate all options on the table, with a spokesperson stating, “We do not have any position on this issue but we’ll study all proposals.”
Potential Alternatives:
A third source has suggested that the EU might consider imposing punitive tariffs on Russian metals, a measure that would not require unanimous agreement among member states.
Import Trends:
EU imports of primary aluminium from Russia have significantly decreased, dropping to nearly 118,000 metric tons between January and September, which is about 6% of total imports, compared to 11% last year and 20% in 2022.