EU proposes Russian aluminum ban in new sanctions package

The European Union (EU) is advancing a proposal for a phased ban on Russian aluminum imports as part of its latest sanctions package, aimed at increasing economic pressure on Moscow nearly three years after its invasion of Ukraine. The draft sanctions package, which has been distributed among EU member states for review, would implement a quota system allowing European buyers to import up to 275,000 metric tons of Russian aluminum for a one-year transition period before a full ban takes effect. According to a document seen by Bloomberg, the quotas would be managed jointly by member states and the EU’s executive arm. The proposal requires unanimous approval from all EU nations before being enacted and remains subject to revision. The EU imported approximately 320,000 metric tons of unwrought aluminum from Russia between January and November 2024, representing about 6% of its total aluminum imports, according to UN Comtrade data. While European imports have declined since the start of the war, Russia has redirected shipments to alternative markets, including China. In addition to the aluminum restrictions, the proposed sanctions package seeks to further isolate Russia financially by cutting additional Russian banks off from the SWIFT banking system. The measures also target over 70 "dark-fleet" vessels engaged in transporting Russian oil in violation of previous sanctions. The EU has faced internal divisions over imposing tougher sanctions, with some member states resisting new measures due to economic concerns. Hungary, in particular, has been increasingly reluctant to support additional penalties against Moscow, recently delaying the routine renewal of existing Russia sanctions before ultimately conceding. The United States and the United Kingdom have already taken steps to curb Russian metal exports, including a 2024 ban on trading Russian metals on the London Metal Exchange (LME). That move led to significant volatility in global commodity markets and reshaped international trade flows. While the EU initially considered adding Russian liquefied natural gas (LNG) to the current package, officials are now expected to address LNG imports separately through a long-term roadmap for phasing out Russian energy reliance. Other key elements of the proposed sanctions package include: - A ban on the temporary storage of Russian oil within EU borders. - Expanded restrictions on Russian aircraft and aircraft controlled by Russian entities. - Prohibition of transactions with multiple Russian ports and airports used for weapons transfers. - Targeted measures against three Russian-controlled banks operating abroad and foreign entities utilizing Russia’s SWIFT-equivalent system (SPFS). - Restrictions on the sale of software, hardware, and other technologies used in Russian weapons production. - Sanctions on companies in China, Türkiye, and other countries aiding Russia in circumventing existing EU measures. Separately, the EU has also proposed new tariffs on Russian and Belarus agricultural products not already subject to duties, along with additional restrictions on nitrogen-based fertilizers. Related:

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