By Julia Payne and Lili Bayer
BRUSSELS (Reuters) -The European Commission proposed banning imports of Russian primary aluminium imports and restricting sales of video game consoles to Russia in a 16th package of sanctions over its invasion of Ukraine, a document seen by Reuters showed.
The proposal was circulated to member states on Tuesday with discussions due to start on Wednesday afternoon. The restrictions also include measures to crack down on circumvention of the Group of Seven nations’ price cap on Russian oil.
Imports of primary aluminium generate significant revenues for Russia, thereby enabling the continuation of its war, the document said.
The ban would include aluminium alloys and have a one-year phase-in period, the proposal said, with “necessary” imports of 275,000 metric tons exempt for this period.
The 27-member bloc imported nearly 330,000 tons of Russian primary aluminium and alloys for the January to November period last year, according to Trade Data Monitor. The full 2024 figure has not been published yet. In 2023, the EU imported more than 500,000 tonnes from Russia.
JOYSTICKS AND XBOX
Sales to Russia of video game consoles and other entertainment tools like flight simulators and joysticks will also be restricted as they could be used as controllers for drones.
This week, the EU’s foreign policy chief Kaja Kallas said Russia was “really being creative” in finding alternative equipment for its military.
“Even elements like the consoles for the video games, because apparently these are the ones that they operate the drones with,” Kallas said.
That would impact sales of consoles like Microsoft’s Xbox, Nintendo’s Switch and Sony Playstation.
The proposal also adds 50 new entities and individuals. The list was not shared by EU diplomats but they said it includes some Russian regional banks.
About 75 ships, mainly energy tankers, could be included in addition to the 79 vessels listed already, the diplomats said.
Regarding oil, the Commission wants to impose new restrictions on “software related to oil and gas exploration” and will introduce “a transaction ban” to include ports and locks and airports in Russia used to transfer drones, missiles or used to circumvent the G7 oil price cap.
“That includes access to facilities of the listed ports and locks and airports and the provision of any services to vessels or aircrafts. Appropriate exemptions are included,” the document said.
The plan also extends the phase-in period on the Russian diamond ban from third countries from March until September this year. From September, diamond sellers to the Group of Seven (G7) nations must use a blockchain-based tracing mechanism to prove the stones are of non-Russian origin.
The Commission decided not to ban Russian liquefied natural gas (LNG) despite a push by some member states, owing to fears of not finding sufficient alternatives in time.
(Reporting by Julia Payne and Lili Bayer, additional reporting by Pratima Desai in LondonEditing by David Goodman, Elaine Hardcastle)
