EU introduces “No Russia clause”

The European Union Council has adopted a 12th package of sanctions against Russia, the European Commission said in a statement, after Austria gave its final approval over the weekend.

The package focuses on a Russian-origin diamond import ban as well as imposing additional import and export bans on Russia, combating sanctions circumvention and closing loopholes, it said, The Economic Times reports.

The ban on direct non-industrial diamond purchases from Russia will start on January 1 followed by a phased ban on indirect imports to be completed by September 1. The diamond ban will be done in coordination with the Group of Seven countries (G7), which announced a similar ban earlier this month. The global natural diamond jewellery business is worth $87 billion.

As previously reported by Reuters, in an effort to prevent Russia from maintaining its military hardware, the EU is introducing a "No Russia clause" that requires that EU exporters to contractually prohibit re-exportation to, or for use in, Russia of a list of "sensitive goods and technology."

The package also tightens compliance rules for those buying Russian oil via the G7 price cap mechanism. However, EU countries watered down an initial proposal to ban the sale of old oil tankers to Russia or Russia-linked firms to a "notification" procedure.

The package also introduces a new import ban on liquefied petroleum gas (LPG) with a one-year transition period as well as a list of metal products, including "pig iron and spiegeleisen, copper and aluminium wires, foil, tubes and pipes for a total value of 2.2 billion euro ($2.40 billion) per year."