EU proposes to ban in a months time shipping, financing services for Russian oil – source

div classBodysc17zpet90 cdBBJodivpBRUSSELS Reuters – The European Commission has proposed to ban in a months time all shipping, brokerage, insurance and financing services offered by EU companies for the transport of Russian oil worldwide, an EU source told Reuters on Wednesday.p

pThe measure is part of a proposed embargo on Russian oil that is meant to cripple Russias oil industry.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pProvided the proposal gets the approval of EU governments, all insurance, finance and shipping services for Russian oil transport would be banned in a months time, the source said, declining to be named because of the sensitivity of the matter.p

pThe ban would apply to Russian exports of oil worldwide, potentially affecting Moscows ability to find alternative buyers after the EU stops buying Russian oil.p

pShould it be approved, the EU‘s embargo on oil would take full effect in six months’ time, with no intermediate measures, both for new contracts in the spot market and existing longterm contracts, the source said, adding that the expectation is that purchases would decline before the deadline.p

pA similar embargo on Russian coal, imposed by the EU in April took immediate effect for the spot market, and had a fourmonth winddown period for existing contracts. p

pThe ban on shipping and financial services for Russia oil would apply only to EU companies. p

pA range of nonEU companies, with many of the largest based in Bermuda, offer seaborne transport for oil. Brokerage is also offered by many nonEU companies. p

pSeveral insurers have already suspended part of their business with Russia since it invaded Ukraine on Feb. 24 in what the Kremlin calls a “special military operation”.p

pThe source said the ban would however have a “chilling” effect on Russian oil trade and could also lead to selfsanctioning, meaning that companies could apply it even if not directly targeted by the embargo.p

p

pp Reporting by Francesco Guarascio fraguarascio editing by Barbara Lewisp

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