France and Germany achieved EU penalties against Lukoil

France and Germany have made a proposal to the European Union to introduce new penalties aimed at Russian oil company Lukoil and other market participants who help Russia sell oil. This step is part of the development of the 19th package of economic restrictions, the goal of which is a significant reduction in Kremlin’s oil revenues that are essential for funding war against Ukraine. On Monday, September 8, RTBF reported.

The working document states that the sale of oil and gas is a major source of financing for Russian military operation. France and Germany encourage the EU to increase pressure on market participants, third countries and companies with an important role in implementing Russia’s energy resources, including Lukoil. This company not only remains one of the leading oil manufacturers in Russia, but also controls the network of gas stations in EU countries, such as Belgium.

In addition, Paris and Berlin offer to turn to countries that will help prevent existing penalties. In particular, the initiative includes steps against oil refineries that buy Russia’s oil and then sell it to Europe under another brand source. Thus, they want to strengthen the penalty mechanism and avoid an unfair bypass.

Although the EU has officially prevented Russian oil imports after the raid on Ukraine, countries such as Slovakia and Hungary have become exceptions due to their strong hope of this resource.

The Franco-German document also recommends that Russia’s financial transactions focus, as about 250 small banks are actively involved in schemes that support the country’s military efforts. The suggested steps should be in line with all 27 EU member countries after their development of the European Commission.

Meanwhile, the United States expressed their readiness to impose new sanctions against Russia and called Europe in joint action.