According to six sources, EU nations are pushing back against the so-called “no Russia clause,” retaliatory financial caps, and the imposition of sanctions on personal use products as aspects of the Commission’s most recent proposed package of penalties against Russia.

The proposal aims to tighten new loopholes on sanctions circumvention and would be the bloc’s twelfth since Russia invaded Ukraine in February 2022.

However some member states, which the sources declined to identify, say the new proposal goes too far and would backfire on EU global trade and ultimately, fail in its aims.

Countries said at an ambassadorial meeting this week said Article 12 G in the proposal, dubbed the “No Russia clause”, could potentially create havoc for European companies globally, the sources familiar with the discussions said.

Under the proposals aired at the meeting, the sources said, EU exporters would be forced to insert a re-export prohibition to Russia across all goods in the Commissions list of custom codes, which encompasses more items of daily use than those of military utility for Russia.