Pro-Ukraine scholars call for much tougher sanctions on Russia
25/04/2023 10:39
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Scholars proposes $30 a barrel price cap on Russian oil
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Group says Russian steel and iron should be sanctioned
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Calls for easier confiscation of Russian assets
By Guy Faulconbridge
MOSCOW, April 25 (Reuters) - A group of pro-Ukrainian
scholars has called for much tougher Western sanctions on
Russia, including halving an oil price cap to $30 a barrel,
imposing a full embargo on Russian steel, iron and diamonds and
making it easier to confiscate Russian assets.
The International Working Group on Russian Sanctions, which
includes around 40 scholars including Stanford University's
Michael McFaul, a former U.S. ambassador to Russia, said tighter
sanctions would reduce Russia's ability to fight in Ukraine.
"The only way to stop the ongoing killing, suffering, and
economic destruction is to defeat the Russian military and force
Russian soldiers to withdraw from Ukraine’s sovereign
territory," the group said in a 33-page note dated April 24.
The group says it coordinates and consults with the
Ukrainian government but does not take direction from Kyiv,
which has long called for tougher sanctions on Moscow.
President Vladimir Putin says the West's attempts to
undermine Russia's economy amount to economic war, but have
failed to cause serious harm. Moscow has redirected exports,
especially oil it once sold in Europe, to new customers in Asia.
In the report, entitled "Action Plan 2.0 - Strengthening
Sanctions against the Russian Federation", the scholars said
Russia's energy sector should be the main target.
In December major economies imposed a $60-per-barrell global
price cap on Russian oil transported by sea. Those calling for
tougher measures say the impact was limited because the cap is
close to the market price. Moscow calls the price cap illegal.
"We see further energy sanctions as key to constraining its
war-making capability, especially because the G7 has recently
decided against lowering the price cap," the group said.
It called for the cap to be lowered to $45 a barrel
immediately, with a goal of cutting it further to $30 - around
what it estimates to be Russia's marginal production cost.
The cap should be enforced more stringently, and an import
tax on Russian oil and gas be imposed, it said. Japan, Taiwan
and South Korea should impose an embargo on Russian energy in
East Asia.
The West should impose full sanctions on big Russian energy
firms including Gazprom GAZP.MM , Gazpromneft, Rosneft
ROSN.MM , Surgutneftegaz SNGS.MM , Lukoil LKOH.MM , Tatneft
TATN.MM , Transneft TRNF_p.MM , Sibur IPO-SIBU.L ,
Zarubezhneft and Novatek NVTK.MM , the group said.
Any Western oil and gas companies remaining in Russia should
face a 100% tax on benefits derived from their Russian
operations, while Western oil field services should be blocked
for Russia.
The West should impose an embargo on all Russian iron and
steel as well as its diamonds and jewelry, the group said, while
tougher sanctions should be imposed on all major Russian banks.
Deadlines should be set for remaining foreign banks to leave.
The group called for easier confiscation of Russian private
and state assets across the world.
(Reporting by Guy Faulconbridge)
((guy.faulconbridge@thomsonreuters.com; Telephone
+79856400243;))