The G7 is nearing a deal to significantly escalate sanctions on Russian oil revenue over Moscow’s resistance to striking a deal to end the war in Ukraine, according to reports.
“We are aligned on the need to act together and believe that now is the time for a significant coordinated escalation of measures to bolster Ukraine’s resilience and critically impair Russia’s ability to wage war against Ukraine,” the draft says, per Bloomberg.
Sources told the outlet that the statement could still be changed before all seven nations (Canada, the US, France, Germany, Italy, Japan, and the UK) sign onto it.
“We agreed that now is the time to maximize pressure on Russia’s oil exports, a major source of their revenue,” the statement reportedly reads.
It is thought to include measures to sanction Russian oil majors and target its shadow fleet of oil tankers and energy trade.
The draft indicates that the G7 is exploring a variety of options, extending beyond Russia’s energy sector to include other critical economic areas such as finance and the defense industry.
It highlights plans to target entities and countries that are bolstering Moscow’s war efforts and assisting it in circumventing current sanctions.
Bloomberg reported that the draft statement also suggests that ministers plan to review Ukraine’s financial requirements.
This includes discussing strategies to make additional use of frozen Russian central bank assets.
Sources who spoke to Bloomberg on condition of anonymity said that both the EU and the G7 are hoping to conclude their respective sanctions packages this month.
At an EU summit in Copenhagen on Wednesday, major European powers expressed their support for a proposal to use frozen Russian assets as collateral for a huge loan to fund Ukraine’s reconstruction.
The so-called “reparation loan” was reportedly first mooted by European Commission President Ursula von der Leyen in September as a counterbalance to diminishing US assistance to Ukraine.
At the summit, EU leaders discussed bolstering Europe’s defenses and Ukraine’s financial firepower, including fleshing out details for a “drone wall” aimed at countering the threat of Russian airspace incursions.
In its 19th sanctions package, unveiled on Sept. 19, the EU targeted Russian energy imports, banks, crypto platforms, military suppliers and battlefield technology exports.