The European market may not be prepared for the imposition by the EU, the G-7 and its allies of the Russian fuel price cap, which is due to take effect Feb. 5, and the simultaneous prohibition from the EU on nearly all Russian oil imports. While current restrictions apply to Russia's crude oil shipments, the upcoming cap and ban on refined fuels, diesel in particular, has market experts worried about a price spike, Bloomberg reported. The EU will need to replace around 600,000 barrels a day of diesel imports, while Russia will scramble to get new buyers, find storage or cut refinery production.
The top trade official in the EU, Valdis Dombrovskis, said that he would talk about the changes they want to the Inflation Reduction Act during his planned meeting with U.S. Trade Representative Katherine Tai on Jan. 17. He said there have been improvements on how the tax credits for electrical vehicles will be applied, but said, "We're continuing to work on supplies and inputs into batteries and how to make some progress there," as well as other areas.
Ukraine imposed sanctions on 198 Russian, Ukrainian and Belarusian citizens for their role in Russia's war in Ukraine, under a decree from President Volodymyr Zelenskyy, according to an unofficial translation. The sanctions include asset freezes, restrictions on the withdrawal of capital from Ukraine and trade restrictions. In an address, Zelenskyy said the individuals include those "who justify terror" and spread Russian misinformation.
The U.N. Security Council and the U.K. this week added one entry to its ISIL (Da'esh) and al-Qaida sanctions regimes. The designation targets Pakistan national Abdul Rehman Makki, who is the chief of Lashkar-e-Tayyiba, a militant Islamist organization. The U.K. also corrected the entry for Mohammad Jafar Montazeri under its Iran (Human Rights) sanctions list.
Various European countries outside the EU aligned themselves with a string of six recent sanctions decisions made by the European Council, the EC said in Jan. 16 news releases.
The U.S. and the EU signed a tariff-rate-quota agreement to adjust for the exit of the U.K. from the EU. The products are almost entirely agricultural, but plywood also is covered. The agreement was publicized Jan. 17.
The U.K.'s Foreign, Commonwealth and Development Office and Export Control Joint Unit on Jan. 10 issued updated guidance on the arms embargo on Armenia and Azerbaijan. The updates say that "[s]upplies of military list equipment to other end-users; such as, humanitarian, peacekeeping, research or media organisations, will not be considered subject to the embargo, unless there is a clear risk of diversion to the armed forces, police or security forces of either state."
The EU will impose new sanctions on Belarus for its support of Russia's war in Ukraine, European Commission President Ursula von der Leyen said in a Jan. 10 statement. Speaking at a joint news conference with North Atlantic Treaty Organization Secretary-General Jens Stoltenberg and European Council President Charles Michel after signing the joint declaration on EU-NATO cooperation, von der Leyen said sanctions will continue to be a tool used against Russian aggression. "We will extend these sanctions to those who militarily support Russia's war such as Belarus or Iran," the president said. "And we will be coming forward with new sanctions against Belarus, answering Belarus' role in this Russian war in Ukraine."
The EU this week officially opened registration for its next stakeholder event on the U.S.-EU Trade and Technology Council. The Jan. 31 virtual event will feature “broad exchange and information on the outcomes of the third TTC Ministerial Meeting, announced initiatives and ongoing work progress within the EU-U.S. Trade and Technology Council Working Groups.”
The U.K. updated or amended four of its General Licenses under its Russia sanctions regime, the Office of Financial Sanctions Implementation said last week. The licenses pertain to the oil price cap, "winddown" of positions subject to the oil price cap, correspondent banking and payment processing and projects and countries' exemption from the oil price cap.