The bloc has already imposed four rounds of sanctions aimed at punishing Russian President Vladimir Putin and his government for ordering the invasion of Ukraine. The fifth round follows the recent revelations of atrocities in Ukraine. “We have all seen the horrific images from Bukha and other areas from which Russian troops have recently left,” von der Leyen said in a statement. “These atrocities cannot and will not go unanswered.” “We will impose a ban on the import of coal from Russia worth 4 billion euros [$4.4 billion] annually “, he added. If passed, the coal ban would be the European Union’s first coordinated embargo on huge energy exports that fuel Russia’s economy and generate hundreds of billions of dollars in revenue each year. EU leaders have so far been unable to agree on a target for Russian energy because of the risk to the region’s economy at a time of rapidly rising gas and fuel prices. But the mood seems to have changed this week. French President Emmanuel Macron said Monday he would support a full ban on Russian oil and coal imports, and Germany said on Tuesday it could support a coal ban. “Russia is waging a fierce and relentless war in Ukraine, not only against its brave troops, but also against its civilian population,” von der Leyen told reporters. “It is important that we maintain maximum pressure on Putin and the Russian government at this point.” Russia was the world’s third largest coal exporter in 2020, behind Australia and Indonesia, according to the IEA. It is also the largest exporter of thermal coal in the European Union, ahead of China and South Korea. European coal prices have already skyrocketed in anticipation of possible sanctions. Rotterdam coal futures contracts, the regional benchmark, have more than doubled since the beginning of the year and are trading at around $ 295 per metric ton. “Imposing sanctions on coal will make life much more difficult for European utilities, which consume a lot of Russian coal, but energy companies can handle it, and politicians find it easier to sell in public because it is in line with general and accelerating green transition in the EU, “Henning Gloystein, director of energy, climate and resources at the Eurasia Group, told CNN Business. The fifth round of sanctions also includes a total ban on transactions with Russia’s second-largest bank VTB and three other lenders. Ships registered or operated by Russia will be banned from EU ports, with the exception of ships carrying energy, food and other humanitarian aid. Exports of technology and other sensitive equipment worth $ 10 billion ($ 11 billion), such as quantum computers and advanced semiconductors, will be banned. EU countries will also block the import of products such as wood, cement, seafood and beverages worth $ 5.5 billion ($ 6 billion). “But that’s not all. We are working on additional sanctions, including oil imports, and we are thinking about some of the ideas presented by the Member States, such as taxes or specific payment channels, such as a guarantee account,” von der Leyen added. Russian oil has already been banned by the United States and the United Kingdom, and a wider de facto embargo has prevailed as banks, traders, shippers and insurance companies try to avoid financial sanctions. The International Energy Agency says Russia could be forced to cut production by 3 million barrels a day, starting this month, as it struggles to find buyers. – Anna Cooban contributed to this article.
