Bloomberg reported this with reference to persons familiar with the matter.
G-7 officials are discussing the idea ahead of the leaders' summit in Japan in May. The main goal is to bring EU member states into the pressure. The proposal is currently still under discussion and is subject to change.
The approach under discussion would overturn the current sanctions regime – in this case, all exports would be banned and only certain exports would be allowed. Currently, all exports are allowed if they are not subject to sanctions.
If the G-7 leaders support this step at the summit, exceptions will need to be agreed upon. At the same time, according to one of the sources, it is very likely that medicines and agricultural products, including food, will remain exempt from sanctions.
But there are potentially serious obstacles to implementation. To come into force in the EU, the new criteria must be adopted by all member states. This will trigger a fierce debate, given the negative reaction from companies that still export to Russia.
Currently, sanctions have almost halved the value of EU and G-7 exports to Russia. According to the Geneva-based Trade Data Monitor, the goods from Europe, the United States, Canada, and Japan that still enter Russia are valued at USD 66 billion.
G-7 members are concerned that this is too much of a benefit for the aggressor state's economy. Especially when Moscow finds ways to circumvent sanctions through third countries.
Germany, Italy and Poland remain the three largest European exporters of goods to Russia, according to the monitoring data. Among the G7 goods that may be most affected by the sanctions are cars, chocolate, beer, footwear, flowers and cosmetics, as well as non-medical and non-agricultural goods.
At the same time, European countries continue to buy some commodities from Moscow, including palladium, copper, iron, and nickel.
In addition, an almost complete ban on exports to Russia could bring Moscow and China even closer together in their search for alternative buyers for sanctioned goods.
Tightening trade restrictions is likely to be a key issue at the G-7 summit. Leaders are also expected to make progress on tracking Russian diamonds across borders, which would ultimately pave the way for trade restrictions.
The G-7 summit will be held in the Japanese city of Hiroshima and will last three days, from May 19 to 21. On the eve of the summit, Japanese Prime Minister Fumio Kishida has scheduled a series of ministerial meetings to discuss the situation in Ukraine.
On April 21, the content of the new EU sanctions package against Russia will be made public.