Russian oil sanctions stalled as EU awaits G-7 consensus, US calls for major action

The European Union has postponed the formal presentation of its latest sanctions package against Russia, following pressure from the United States to adopt stronger measures. A European diplomat confirmed the delay, which comes after US President Donald Trump demanded more robust European action as a prerequisite for advancing America’s own sanctions.

The European Commission was scheduled to unveil the 19th round of sanctions on September 17. However, the US pushed its Group of Seven (G-7) allies to consider imposing tariffs as high as 100% on China and India, targeting their purchases of Russian oil. These measures aim to increase economic pressure on President Vladimir Putin and encourage negotiations to end the conflict in Ukraine, Bloomberg reports.

G-7 officials are currently drafting a new sanctions package and hope to finalize the text within the next two weeks, according to an anonymous source familiar with the discussions. The EU is also contemplating sanctions on companies in India and China that facilitate Russia’s oil trade.

Data shows a significant rise in Indian crude oil imports from Russia following the invasion of Ukraine, with some shipments routed through ambiguous channels such as the Suez Canal or unidentified vessels. These energy purchases by China and India have been instrumental in financing Moscow’s war efforts.

Over the weekend, President Trump reiterated his readiness to impose “major” sanctions on Russian oil, conditional on similar moves by European nations. The US plan also targets Russian oil companies and the networks enabling Moscow to profit from crude exports. Despite these intentions, Trump has yet to impose direct sanctions on Russia, even as deadlines to act have passed and Putin remains resistant to peace talks.

While the US has doubled tariffs on Indian goods to 50% in response to India’s continued Russian oil purchases, Washington continues trade negotiations with both India and China, complicating the diplomatic landscape.

The EU faces challenges in matching US demands, as many member states, including Germany, depend on trade with India and China. Some elements of Trump’s demands, however, are already integrated into EU policy. The bloc has delayed phasing out Russian gas until after 2027 and granted temporary exemptions to landlocked countries like Hungary and Slovakia from oil sanctions.

Since sanctions took effect in 2022, Russian crude oil imports to the EU have plummeted from 27% to about 3%. The upcoming sanctions package reportedly targets several Russian banks and energy firms, as well as Russia’s payment and credit card systems, crypto exchanges, and further restrictions on oil trade.

By Vafa Guliyeva