Ten European Union (EU) countries are advocating for further sanctions on Russian trade, specifically targeting its metal outputs such as aluminium. This initiative aims to diminish Russia’s revenues and funding for its ongoing war in Ukraine, as outlined in a letter obtained by Reuters.
Key Highlights:
Proposal Overview:
The letter, sent two weeks ago, suggests imposing bans on Russian-origin metals, recognizing that metals are a significant revenue source for Russia, second only to fossil fuels.
The signatories include Poland, which will assume the EU presidency in January, alongside Denmark, Czech Republic, Ireland, Estonia, Latvia, and Lithuania. Sweden, Finland, and Romania also support the proposal.
Current Sanctions Landscape:
Over 2,000 individuals and entities are currently on the EU’s sanctions list, but major Russian metal producers, such as Rusal, are not included.
The EU has previously banned certain aluminium products like wire, tubes, and foil, which constitute less than 15% of total EU aluminium imports.
Upcoming Actions:
The EU Commission plans to propose a 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.
Most EU metal consumers have shifted to alternative suppliers, sourcing copper from countries like Peru and Serbia. However, significant imports of Russian-origin primary aluminium persist.
U.S. and UK Responses:
The United States and Britain have already banned imports of metals produced in Russia, while the EU has hesitated due to resistance from member states, including France. Recent reports suggest that France is now more open to considering the proposal.
Potential Alternatives:
An EU spokesperson noted that all sanctions decisions require unanimous agreement among member states. However, punitive tariffs on Russian metal might be an alternative approach that does not necessitate unanimity.
EU imports of primary aluminium from Russia have decreased significantly, dropping to 6% of total imports between January and September, down from 11% last year and 20% in 2022.