EU eyes oil price cap, more curbs on high-tech exports in new Russia sanctions -sources

By Gabriela Baczynska and John Chalmers

BRUSSELS (Reuters) – The European Union is taking a look at an oil value cap, tighter curbs on high-tech exports to Russia and extra sanctions in opposition to people, diplomats mentioned on Thursday, in response to what the West condemned as a brand new escalation in Moscow’s warfare in Ukraine.

The 27-nation EU was spurred into motion by President Vladimir Putin’s nuclear rhetoric on Wednesday, announcement of a partial mobilisation for the warfare and assist for plans to successfully annex elements of east Ukraine.

EU international ministers agreed at an advert hoc assembly on the sidelines of U.N. talks in New York to organize new sanctions in opposition to Russia, and the bloc’s high diplomat mentioned they’d include “financial and particular person” measures.

The top of the EU govt, European Fee President Ursula von der Leyen mentioned they would come with “extra export controls on civilian expertise”, in response to feedback carried by CNN.

Three EU diplomats in Brussels mentioned new sanctions would centre round an oil value cap to match that agreed by the G7 most industrialised world powers – a gathering the place EU states France, Germany and Italy additionally sit.

“We additionally totally count on extra particular person listings,” mentioned one of many diplomats, who all spoke beneath situation of anonymity.

The individual added the oil cap ought to take impact from December, together with the EU’s embargo on Russian coal, whereas tighter export restrictions for high-tech merchandise are supposed to hamstring Russia’s battlefield capabilities.

Additional curbs on luxurious items exports to Russia had been additionally on the desk. The bloc’s Russia hawks like Poland and the Baltic nations sought a ban on Russian diamond imports and transferring to confiscate Russian property frozen in Europe.

Others, nonetheless, warned the latter was unlikely to get the unanimous backing of all EU nations essential to introduce sanctions.

Germany, the EU’s financial powerhouse, has thus far barred more durable financial restrictions, whereas Hungarian Prime Minister Viktor Orban – who cultivates shut ties with Putin – mentioned on Thursday all of the sanctions needs to be scrapped.

“I do not know the way quickly we are able to agree on new sanctions,” mentioned an EU official, noting resistance to extra punishment of Moscow by some member states may sluggish issues down.

The European Fee is anticipated to current subsequent week a written proposal, and the 27 EU nationwide leaders would possibly approve it once they meet in Prague on Oct.6-7, mentioned the sources.

(Writing by Gabriela Baczynska; Enhancing by Kirsten Donovan)