EU tightens sanctions: New measures planned against Russian metal production

The European Union plans to expand its sanctions against trade with Russia to further diminish its revenues. Ten EU member states, including the future EU Council President Poland, have proposed in a joint letter to particularly restrict the import of Russian metals such as aluminum. This measure is intended to hinder the financing of the ongoing war in Ukraine, thus targeting a crucial revenue source for Russia beyond fossil fuels. Framed by this initiative, which is also supported by Denmark, the Czech Republic, Ireland, Estonia, Latvia, Lithuania, as well as Sweden, Finland, and Romania, the EU Commission is planning a new sanctions package. It aims to present this in January, with the goal of adopting it in February—timed to coincide with the third anniversary of the Russian invasion of Ukraine. Some EU countries have already found alternative sources for metals, such as copper from Peru and Serbia. However, the EU continues to import significant quantities of Russian aluminum. Obstacles to a more comprehensive sanctions package have so far included members like France, which is now showing more openness to such measures. EU sanctions policy is decided unanimously in the Council. An import ban on aluminum products, which constitutes less than 15% of the EU imports of the metals in question, has already been decided. If no agreement on comprehensive sanctions is reached, punitive tariffs could also be considered, which do not require unanimity. Recently, the import of Russian primary aluminum into the EU has noticeably declined, making sanctions or tariffs appear as more likely options. According to Trade Data Monitor, the share of imports from Russia decreased from 11% in the previous year to about 6% of the over two million tons that the EU imported in the first nine months of the year.