The European Union (EU) agreed the sixth package of sanctions against Russia on 31 May 2022. The sixth package includes an embargo on Russian oil and a ban on insuring ships carrying Russian oil. At this stage, the specifics of the sanctions are still being debated, but they are expected to be released later this week.

We expect that the new restrictions will have a significant impact on Russia’s ability to export its oil. Through the EU and UK coordinating their implementation of a marine insurance ban, alongside the EU’s oil embargo, Russia’s ability to export oil anywhere in the whole will be heavily disrupted. This is of significant concern for Russia, given oil exports account for about 40 per cent of Russia’s federal state budget.

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