Two sources with knowledge of the discussions say that the European Union is working on a new package of sanctions against Russia that is likely to restrict the leasing of airplanes and the import and export of products like jet fuel, steel products and luxury goods.
Despite mounting evidence of war crimes committed by Russian forces in Ukraine, the bloc is divided over whether to extend the sanctions to energy imports.
410 bodies were found in towns that were reclaimed from Russian forces around the city of Kyiv, according to the top prosecutor in the country. Over the weekend, various international media organizations reported on the mass killings of civilians in the town of Bucha, a Ukrainian city close to the country's capital of Kyiv, which had been under Russian occupation until recently.
The reports led to calls from within the European Union for the bloc to go further in punishing Moscow for its invasion of Ukraine. The fifth package of sanctions against Russia is being worked on by the bloc and is expected to be approved later this week.
Two EU officials, who did not want to be named due to the sensitive nature of the talks, told CNBC that a proposal for the next sanctions package includes airplane leasing, steel products, luxury goods and jet fuel. The package is still a work in progress and could change as talks continue in the coming days and ahead of a crucial meeting of EU ambassadors on Wednesday.
The lack of measures on the Russian energy sector was mentioned by one of the officials.
The EU has been debating the issue of banning Russian gas, oil and coal since Russia invaded Ukraine. Some nations are in favor of banning Russian energy, but other EU countries argue that they would hurt their own economies more than Russia.
The president of France said Monday that the EU should restrict Russian oil and coal after the atrocities reported in Bucha. Poland stopped imports of Russian coal last month.
Some EU nations are still against approving energy sanctions.
German Finance Minister Christian Lindner told CNBC in Luxembourg on Monday that Germany would support further sanctions on Russia.
We have to put more pressure on Putin and we have to cut all economic ties to Russia, but at the moment it is not possible to cut the gas supplies.
Lindner said no speculation when asked if the EU should move ahead with sanctions on oil and gas.
His Austrian counterpart was against banning Russian gas.
Austria is not in favor of more sanctions. We are dependent on the Russian gas and I don't think all the sanctions that hit us more than the Russians would be good for us. Magnus Brunner, Austria's federal minister for finance, told CNBC that they are against sanctions in oil and gas.
Austria imported almost half of its natural gas from Russia in 2020, according to the European statistics office. According to Eurostat, Hungary imported more natural gas from Russia than any other country.
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