Released April 18, 2022 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has announced its latest round of sanctions against Russia, which include forthcoming import bans on coal, wood, chemicals, semiconductors and jet fuel, among others.
The adoption of the fifth round of sanctions, caused by Russia's invasion of Ukraine, includes the immediate ban on all new coal import contracts, while existing contracts will have to be canceled by mid-August. The EC said the ban affects a quarter of all Russian coal exports, amounting to an 8 billion euro (US$8.7 billion) loss of revenue per year for Russia.
There are also a series of targeted EU export bans--worth 10 billion euro (US$10.8 billion)--in areas in which Russia is vulnerable due to its high dependency on European Union (EU) supplies. This includes quantum computing, advanced semiconductors, sensitive machinery, transportation and chemicals. It also includes specialty catalysts for use in the refinery industry, alongside jet fuel and fuel additives. Combined, the targeted sanctions on exports to Russia would continue to "degrade Russia's technological base and industrial capacity," the EC said.
It added: "Together with the four previous packages, these sanctions will further contribute to ramping up economic pressure on the Kremlin and cripple its ability to finance its invasion of Ukraine. These measures are broader and sharper, so that they cut even deeper into the Russian economy. They have been coordinated with international partners."
Additional import bans, worth an estimated 5.5 billion euro (US$6 billion), include cement, rubber products, wood, spirits (including vodka), liquor, high-end seafood (including caviar), and an anti-circumvention measure against potash imports from Belarus.
Last month, Industrial Info reported on the EC's plan to make Europe independent from Russian fossil fuels well before 2030, starting with natural gas. The proposed REPowerEU plan will seek to diversify gas supplies, speed up the roll-out of renewable gasses and replace gas in heating and power generation. This can reduce European Union demand for Russian gas by two-thirds before the end of the year, the EC said, and the region can phase out its dependence on fossil fuels from Russia "well before 2030."
A fortnight later, the EU inked a major deal with the U.S. for the supply of extra liquefied natural gas (LNG). The U.S. has agreed to supply at least 15 billion cubic meters of LNG to EU countries by the end of 2022. This will effectively replace the amount of LNG that Europe traditionally gets from Russia. Looking ahead, the U.S. will supply an additional 50 billion cubic meters of LNG until 2030. For additional information, see March 16, 2022, article--Europe Plans to Cut Russia From Energy Mix and March 30, 2022, article--Europe Strikes Major LNG Deal with U.S..
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The adoption of the fifth round of sanctions, caused by Russia's invasion of Ukraine, includes the immediate ban on all new coal import contracts, while existing contracts will have to be canceled by mid-August. The EC said the ban affects a quarter of all Russian coal exports, amounting to an 8 billion euro (US$8.7 billion) loss of revenue per year for Russia.
There are also a series of targeted EU export bans--worth 10 billion euro (US$10.8 billion)--in areas in which Russia is vulnerable due to its high dependency on European Union (EU) supplies. This includes quantum computing, advanced semiconductors, sensitive machinery, transportation and chemicals. It also includes specialty catalysts for use in the refinery industry, alongside jet fuel and fuel additives. Combined, the targeted sanctions on exports to Russia would continue to "degrade Russia's technological base and industrial capacity," the EC said.
It added: "Together with the four previous packages, these sanctions will further contribute to ramping up economic pressure on the Kremlin and cripple its ability to finance its invasion of Ukraine. These measures are broader and sharper, so that they cut even deeper into the Russian economy. They have been coordinated with international partners."
Additional import bans, worth an estimated 5.5 billion euro (US$6 billion), include cement, rubber products, wood, spirits (including vodka), liquor, high-end seafood (including caviar), and an anti-circumvention measure against potash imports from Belarus.
Last month, Industrial Info reported on the EC's plan to make Europe independent from Russian fossil fuels well before 2030, starting with natural gas. The proposed REPowerEU plan will seek to diversify gas supplies, speed up the roll-out of renewable gasses and replace gas in heating and power generation. This can reduce European Union demand for Russian gas by two-thirds before the end of the year, the EC said, and the region can phase out its dependence on fossil fuels from Russia "well before 2030."
A fortnight later, the EU inked a major deal with the U.S. for the supply of extra liquefied natural gas (LNG). The U.S. has agreed to supply at least 15 billion cubic meters of LNG to EU countries by the end of 2022. This will effectively replace the amount of LNG that Europe traditionally gets from Russia. Looking ahead, the U.S. will supply an additional 50 billion cubic meters of LNG until 2030. For additional information, see March 16, 2022, article--Europe Plans to Cut Russia From Energy Mix and March 30, 2022, article--Europe Strikes Major LNG Deal with U.S..
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
