The Yermak-McFaul group has developed a solution that will deprive Russia of access to money from oil and gas exports

10 May 2022, 15:51 | Economy
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The Yermak-McFaul International Working Group on Sanctions against Russia presented the second developed document - the Roadmap for Energy Sanctions: Recommendations on Sanctions against the Russian Federation. This is reported by the website of the President of Ukraine.

The document details the topic of energy sanctions, and is intended to help governments and companies around the world form proposals for sanctions policy towards Russia..

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The document contains recommendations on policy actions that will help deprive Russia of oil and gas revenues on the one hand, and will minimize disruptions to markets and the global economy on the other hand..

Expert group:.

supports the decision of the European Commission to impose a complete ban on the import of all Russian oil;

justifies a gradual embargo on gas imports from the Russian Federation;

provides proposals, including concrete mechanisms, on how to ensure a controlled phased implementation of such a ban, while minimizing revenues from Russian oil exports during the transition period.

Such mechanisms may be considered by individual countries as a priority. This is about:.

regulated import tax (or tariff);

storage of energy funds on a special escrow account.

In this regard, the document notes the importance of cutting off Russia from financial flows from gas exports, since Europe during the war pays the Russian Federation for gas much more than for oil..

Thus, the authors of the Energy Sanctions Roadmap draw attention to the fact that:.

Russia's budget is based on revenues from energy sales, primarily to European countries;

since February 24, the European Union has been paying about 800 million. dol. USA for the import of Russian oil and gas.

Special attention is paid to additional sanctions measures to prevent circumvention of restrictions imposed on the energy sector. In particular, these are targeted sanctions against maritime export service providers, bypassing the controlled sales regime..

In addition, the Roadmap proposes strategies to prevent the consequences of making Europe independent of Russian energy carriers and counteracting the use of energy resources as a weapon..

The expert group emphasizes that the European embargo on Russian energy should be part of a coordinated EU-US strategy, including synchronized diplomatic steps and engagement with private sector stakeholders.

Members of the Yermak-McFaul International 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 to deprive it of its ability to finance an aggressive and unjust war against Ukraine.

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Recall that the international working group on sanctions against Russia is headed by the head of the Office of the President of Ukraine Andriy Yermak and the director of the Freeman-Spogli Institute for International Studies (FSI), former national security adviser to the President of the United States Ambassador Michael McFaul.

The damage caused to Ukraine as a result of the barbaric war is already measured in hundreds of billions of dollars. In order for Russia to pay reparations to Ukraine, the best lawyers in the world will be involved.

One of the liability mechanisms through which it is planned to force Russia to pay compensation to Ukraine is the creation of a so-called escrow account - a special conditional account that takes into account property, documents or funds until certain circumstances occur or certain obligations are fulfilled.. In particular, it is assumed that such an account will be credited with funds that the aggressor country will receive from the sale of oil and gas to the West..



It is also worth clarifying that Russian Gazprom has repeatedly lost cases in international arbitrations, in particular, due to attempts to abuse its monopoly position in the gas market in Europe. Such victories are on the account of Ukraine, and the closest neighbor of Ukraine - Poland.

Today, as a result of the sanctions imposed on Russia, more and more countries are refusing Russian oil and gas. Even the recent ally of the Russian Federation - Germany, has set as its goal to abandon Russian energy sources.

In addition, a number of countries have adopted a Russian embargo on the supply of energy.




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