Ukraine presented roadmap for energy sanctions against Russia
The International Working Group on Sanctions against Russia (Ermak-McFaul Expert Group) has developed a Roadmap for Energy Sanctions: Recommendations for Sanctions against Russia.
ЯAs Censor.NET reports with reference to the Office of the President of Ukraine.
"The application of energy sanctions should increase the cost of invading Ukraine for Russia and help the Ukrainian state protect its territorial integrity, freedom and democratic values.
The authors of the Roadmap for Energy Sanctions point out that Russia's budget is based on revenues from the sale of energy, primarily to European countries. Since February 24, the European Union has paid about $ 800 million daily. The United States for the import of Russian oil and gas, "the statement said.
The document, in particular, contains recommendations for political action that will help deprive Russia of this income, minimizing disruptions in markets and the world economy, according to the OP.
It is noted that the Expert Group supports the decision of the European Commission to impose a total ban on imports of all Russian oil.
"In addition, experts provide proposals, including specific mechanisms, to ensure the managed phased implementation of such a ban, while minimizing profits from Russian oil exports during the transition period. Such mechanisms may be considered a priority by some countries. It is a regulated import tax (or tariff) and storage of funds for energy on a special escrow account ", - added in the OP.
Members of the Ermak-McFaul expert group call on governments, as well as public and private companies, to take the Roadmap as a basis for further public promotion of energy sanctions against Russia.
The group proposes a "reasonable embargo" that bans European imports of crude oil and petroleum products from Russia and Belarus as widely as possible.
Oil embargo
In particular, it is proposed to use a special temporary regime that can support the path to a full embargo, while immediately cutting off Russia from revenues from oil exports:
Regulated import tax (or tariff), designed to redirect significant funds from Russian and / or Belarusian exporters, in order to sharply reduce export earnings for the war and transfer money for reparations
Ukraine ("value transfer mechanism");
Separate cost transfer mechanisms will be introduced for each category of imported crude oil and oil products.
"It will be easier for the EU to replace some categories of oil imports, such as crude oil, than others, such as diesel. To provide targeted incentives for scarce products, the Paying Authority will implement a separate cost transfer mechanism for each major oil import category (Urals, Siberian Light , fuel oil, diesel fuel and others).
Thus, the EU can increase or decrease net payments for any particular category, based on existing market conditions at any time. Such a mechanism can be implemented either in the form of a simple tax based on value or price, or as a more complex scheme," the group explains.
The special escrow account will store net receipts belonging to exporters.
Targeted sanctions against service providers that facilitate maritime exports aimed at circumventing the controlled sales regime.
Further sanctions against the Russian oil sector.
The strategy to mitigate the impact of oil sanctions includes increasing European ownership of critical infrastructure, reducing demand for fossil fuels, further release of emergency reserves, use of OPEC + spare capacity, and support for Kazakh and Libyan production.
It is also about using a higher European margin to replace Russian diesel fuel.
"Reasonable embargo" on gas
The expert group proposes several options for a "reasonable embargo" policy on gas.
In particular, one of the options is to require that all sales of Russian gas in the EU be directed through the Ukrainian GTS.
"This approach would suspend supplies through Nord Stream-1, Yamal-Europe and Turkish Line 2 (for exports to the EU). It would also effectively neutralize Russia's strategy to redirect gas supplies to Europe via Ukraine and limit Russia's ability to selectively discriminate against gas supplies. ", - say in the expert group.
Also among the options - the mode of controlled sales. Impose a levy on Gazprom's sales in the EU and keep the balance of payments in escrow accounts in a manner similar to that described in the oil section.
As described in the section on oil, the import tax will be levied on the supplier, thus confiscating the income that the Russian government otherwise receives from export taxes.
These funds will be directed to the EU to finance the reconstruction of Ukraine. The income balance will be kept in escrow accounts with European banks until the conflict is resolved.
In addition, among the options - the termination of the EU's purchase of Russian gas:
A. Suspend EU natural gas purchases for a short period, e.g. to the European Council in June to cut revenues during this critical period for Ukraine's military efforts.
B. Stopping the purchase of Russian gas by the least dependent countries.
Also among the options is to support the Ukrainian reconstruction - to introduce a fee for the reconstruction, which will be financed by Gazprom, for all gas transited by Ukraine.
Such measures could be similarly applied to Russian LNG exports, for example. restricting access to freight and other services to prevent a "smart embargo" is circumvented, experts say.
Road map - follow the link.
