The European Commission unveiled a proposal for its 16th package of sanctions against Russia, targeting the nation’s primary aluminium imports and the sale of video game consoles, Reuters reports on Wedsnday.
The sanctions are in response to Russia’s ongoing military actions in Ukraine. Discussions among member states are set to begin Wednesday afternoon, aiming to address the evasion of the Group of Seven (G7) nations’ price cap on Russian oil.
The proposed sanctions include a significant measure against Russian aluminium, a key revenue source for the country, which the Commission believes helps fund the war. The ban, if approved, would encompass aluminium alloys and introduce a one-year phase-in period, with a temporary exemption for "necessary" imports up to 275,000 metric tons. In the period from January to November of the previous year, the EU imported approximately 330,000 tons of Russian primary aluminium and alloys, while the total imports for 2023 exceeded 500,000 tonnes.
Additionally, the EU plans to restrict sales to Russia of video game consoles and related equipment such as flight simulators and joysticks, which could potentially be repurposed as drone controllers. The EU’s foreign policy chief, Kaja Kallas, highlighted Russia’s ingenuity in adapting consumer technology for military use, specifically mentioning the use of video game consoles to operate drones. This move would affect the sales of popular gaming systems, including Microsoft (NASDAQ:MSFT) Xbox, Nintendo Switch (NYSE:SWCH), and Sony (NYSE:SONY) Playstation.
The new sanctions proposal also includes adding 50 new entities and individuals to the list of those subject to restrictions, though the names have not been disclosed by EU diplomats. The list reportedly encompasses some Russian regional banks. About 75 ships, mainly energy tankers, may also be added to the existing list of 79 vessels.
In the oil sector, the Commission seeks to impose new limitations on "software related to oil and gas exploration" and introduce a "transaction ban" on Russian ports, locks, and airports involved in transferring drones, missiles, or circumventing the G7 oil price cap. The plan includes exemptions for certain activities at the listed facilities.
Moreover, the proposal extends the phase-in period for the Russian diamond ban from third countries from March until September this year. Post-September, diamond sellers to the G7 must utilize a blockchain-based tracing mechanism to verify that the diamonds are not of Russian origin.
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