Estonia Seeks to Expand EU Sanctions on Belarusian Oil Products

(Bloomberg) -- Estonia plans to impose unilateral sanctions and call on the European Union to expand its own penalties against Belarusian oil products that are currently being transported through the Baltic nation's territory.

In doing so, the government in Tallinn joins fellow EU member Lithuania in raising pressure on Belarus. That country's leader, Alexander Lukashenko, became the target of measures after claiming victory in a 2020 election widely condemned as fraudulent -- and for mounting what Western officials have called a hybrid attack by helping immigrants cross the EU's eastern border.

The decision came after a newspaper investigation revealed this week that companies in Estonia, including state-owned Operail, had circumvented sanctions on Belarusian oil exports by re-labeling the goods under a different product code.

“We have decided to impose an additional sanction from the Estonian state, which would also sanction the goods with the code 2707 for coal-based oil,” Prime Minister Kaja Kallas said during a press conference on Thursday.

Estonian Foreign Minister Eva-Maria Liimets said Estonia would also recommend that the same restriction be applied at the EU level, adding that she had consulted with her colleagues from the other Baltic countries. Lithuania has also called on the EU to expand sanctions on Belarus.

“Sanctions can only be effective if they are imposed jointly by the EU,” Liimets said.

The additional measures are not a full embargo against Belarus, as certain goods will continue to be traded, Liimets added.

Lithuania's two-year-old coalition government suffered its biggest crisis yet in December after it became clear the country's railways had continued to allow the transit of Belarusian fertilizer shipments even after U.S. sanctions targeting state-owned potash producer Belaruskali OAO came into force.

The government passed a decision to terminate a long-term contract for railway transit with Belaruskali, which is now suing Lithuania in court. Belarus reciprocated on Wednesday announcing a ban for railway transit of oil products and fertilizer from Lithuania.