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BRUSSELS – The European Union has proposed expanding sanctions against Russia to include ports in Indonesia and Georgia, marking the first time the bloc has targeted ports in third countries allegedly handling Russian oil. The move is part of the 20th package of sanctions being prepared in response to Russia’s ongoing war in Ukraine.
If approved by all member states, companies and individuals within the European Union would be prohibited from conducting transactions with the listed ports. According to documents reviewed by Reuters on , the EU is proposing sanctions against Karimun Port in Indonesia and Kulevi Port in Georgia.
The proposed sanctions come as the EU seeks to tighten its economic pressure on Moscow and disrupt its ability to finance the war in Ukraine. The move reflects a growing concern within the EU that Russia is utilizing alternative routes and third-country infrastructure to circumvent existing sanctions.
PT Oil Terminal Karimun has vehemently denied allegations of handling Russian oil. In a statement released on , the company “categorically rejects any allegation that the company facilitates or supports the trade of Russian oil or oil products,” characterizing such claims as “baseless and inaccurate.” This denial followed a Reuters report indicating that the location had received Russian fuel oil shipments in December and January.
The broader sanctions package extends beyond port restrictions. It includes new import bans on a range of metals, including nickel bars, iron ore and concentrates, raw and processed copper, and various types of scrap metal, including aluminum. The EU also proposes prohibiting imports of salt, ammonia, stone rubble, silicon, and furskins.
European Commission President Ursula von der Leyen has stated that the package encompasses sectoral restrictions and a shift away from the G7-agreed price cap scheme for oil towards a full ban on maritime services for Russian crude oil. This represents a significant escalation in the EU’s efforts to curtail Russia’s oil revenues.
Notably, the proposal also introduces the use of an “anti-circumvention tool” targeting third countries for the first time. This tool aims to prevent Russia from bypassing sanctions by rerouting trade through intermediary nations. Specifically, the EU is proposing restrictions on the sale of metal-cutting machines and communication devices – including modems and routers – to Kyrgyzstan.
The implementation of these sanctions requires unanimous approval from all EU member states, a process that has recently faced challenges. Bloomberg News reported on , that resistance from some EU countries could potentially blunt the impact of the latest sanctions package. Details of the specific objections were not immediately available, but such disagreements have previously delayed or weakened EU sanctions efforts.
The targeting of ports in Indonesia and Georgia is a significant departure from previous EU sanctions strategies. Historically, the EU has focused on directly sanctioning Russian entities and individuals, as well as restricting trade with Russia itself. Extending the scope of sanctions to third-country entities raises complex legal and diplomatic questions, and could potentially strain relations with those countries.
Kulevi Port, located on the Black Sea coast of Georgia, has been a key transit hub for oil and other commodities. Its inclusion on the sanctions list suggests that the EU believes the port is playing a significant role in facilitating the flow of Russian oil to international markets. Karimun Port in Indonesia, situated in the Riau Islands province, is a major bunkering and transshipment hub for maritime traffic in Southeast Asia.
The EU’s move is likely to intensify scrutiny of maritime shipping routes and the role of third-country ports in enabling Russia to continue exporting oil despite Western sanctions. It also underscores the growing international effort to isolate Russia economically and politically in response to its invasion of Ukraine. The effectiveness of the sanctions will depend on the willingness of other countries to cooperate and enforce the restrictions, as well as Russia’s ability to find alternative routes and partners.
The proposed sanctions package, if implemented, will further complicate the global energy market and could potentially lead to higher oil prices. The EU is attempting to balance its commitment to supporting Ukraine with the need to maintain energy security and avoid disruptions to the global economy. The coming weeks will be crucial as EU member states debate and decide whether to approve the latest round of sanctions against Russia.
