The European Union, according to people familiar with the situation, is proposing a phased ban on Russian aluminum imports as part of a broad package of sanctions ahead of the third anniversary of the Kremlin's invasion of Ukraine, Bloomberg reports, UNN writes.
Details
The package, which was circulated among member states this week, also proposes sanctions that would cut off about 15 banks from the SWIFT banking system and actions against more than 70 shadow fleet vessels involved in the transportation of Russian oil, the sources said.
The sanctions package will allow European buyers to import Russian metal under a quota system for one year before a full ban takes effect, the sources said. The plans will require the support of all member states and may change before they are formally proposed to members, they said.
Since the invasion of Ukraine, there have been calls for the EU to ban Russian aluminum, and Russian supplies to the bloc have steadily declined as producers have sought alternative suppliers. But some buyers and member states have so far resisted such measures, citing that some key products would be difficult to replace entirely.
It is not certain that the EU will agree to the package, which will be the 16th against Russia. Hungary is increasingly resisting additional sanctions against Moscow.
This week, the EU had a difficult time completing the planned six-month extension of its sanctions regime against Russia, with Budapest lifting its blockade at this point just days before the expiration date.
But pressure to take tougher measures against the Russian metals sector has increased in recent months. The United States and the United Kingdom imposed a ban on the trading of Russian metals on the London Metal Exchange last year, which initially caused sharp price fluctuations on the exchange and accelerated the redistribution of global trade flows.
The EU imported about 320,000 tons of unprocessed aluminum from Russia in the first 11 months of 2024, accounting for 6% of total imports, according to UN Comtrade. Meanwhile, shipments to China have surged.
Earlier, the EU considered adding LNG to the proposals, but, according to the publication, "this is likely to be addressed through a roadmap for phasing out this commodity, not through sanctions.
Separately, the EU also proposed this week to impose duties on the remaining agricultural products coming from Russia and Belarus that are not already subject to duties, as well as on some nitrogen fertilizers.
