European Commissioner for Financial Services Valdis Dombrovskis stated on Tuesday that there is no basis for the EU to relax pressure on Russia, directly countering the recent U.S. move to suspend certain oil-related sanctions.
Diverging Stances on Sanctions
Valdis Dombrovskis addressed the issue in Paris during a G7 finance ministers meeting. He emphasized that, from the European Union’s perspective, the time is not right to reduce pressure on Moscow, suggesting instead that existing restrictions should be intensified.
Dombrovskis noted that Russia is profiting from the war in Iran and the current rise in fossil fuel prices, reinforcing his position that sanctions must be strengthened rather than weakened.
U.S. Suspension of Oil Sanctions
The U.S. Treasury Department recently issued a new license suspending sanctions on the purchase of Russian crude oil loaded onto ships. This marks the third such move since the outbreak of the war in Iran.
U.S. Treasury Secretary Scott Bessent justified the decision by citing the needs of countries most vulnerable to the energy crisis. He also provided assurances that the suspension would remain strictly temporary.
Uncertain Future for EU Restrictions
The European Union has spent recent months considering a total ban on the transport of Russian oil, which would supersede the current price cap system. However, member states, which must act unanimously, have not yet implemented a full prohibition.
The 20th sanctions package, adopted in April, only established the groundwork for a potential ban. The ultimate implementation of such measures will likely depend on the consensus reached by G7 nations, which include France, Japan, Canada, Germany, the United States, the UK, and Italy.