*

Imports of primary aluminium, alloys to be included,

document

shows

*

Consoles targeted for possible drone control usage

*

50 new entities and individuals to be included, document

shows

*

Measures to exclude Russian diamonds to be extended

(Adds detail on aluminium, oil exploration, new listings)

By Julia Payne and Lili Bayer

BRUSSELS, Jan 29 (Reuters) - The European Commission

proposed banning imports of Russian primary aluminium imports

and restricting sales of video game consoles to Russia in a 16th

package of sanctions over its invasion of Ukraine, a document

seen by Reuters showed.

The proposal was circulated to member states on Tuesday with

discussions due to start on Wednesday afternoon. The

restrictions also include measures to crack down on

circumvention of the Group of Seven nations' price cap on

Russian oil.

Imports of primary aluminium generate significant revenues

for Russia, thereby enabling the continuation of its war, the

document said.

The ban would include aluminium alloys and have a one-year

phase-in period, the proposal said, with "necessary" imports of

275,000 metric tons exempt for this period.

The 27-member bloc imported nearly 330,000 tons of Russian

primary aluminium and alloys for the January to November period

last year, according to Trade Data Monitor. The full 2024 figure

has not been published yet. In 2023, the EU imported more than

500,000 tonnes from Russia.

JOYSTICKS AND XBOX

Sales to Russia of video game consoles and other

entertainment tools like flight simulators and joysticks will

also be restricted as they could be used as controllers for

drones.

This week, the EU's foreign policy chief Kaja Kallas said

Russia was "really being creative" in finding alternative

equipment for its military.

"Even elements like the consoles for the video games,

because apparently these are the ones that they operate the

drones with," Kallas said.

That would impact sales of consoles like Microsoft's ( MSFT ) Xbox,

Nintendo's ( NTDOF ) Switch and Sony Playstation.

The proposal also adds 50 new entities and individuals. The

list was not shared by EU diplomats but they said it includes

some Russian regional banks.

About 75 ships, mainly energy tankers, could be included in

addition to the 79 vessels listed already, the diplomats said.

Regarding oil, the Commission wants to impose new

restrictions on "software related to oil and gas exploration"

and will introduce "a transaction ban" to include ports and

locks and airports in Russia used to transfer drones, missiles

or used to circumvent the G7 oil price cap.

"That includes access to facilities of the listed ports

and locks and airports and the provision of any services to

vessels or aircrafts. Appropriate exemptions are included," the

document said.

The plan also extends the phase-in period on the Russian

diamond ban from third countries from March until September this

year. From September, diamond sellers to the Group of Seven (G7)

nations must use a blockchain-based tracing mechanism to prove

the stones are of non-Russian origin.

The Commission decided not to ban Russian liquefied natural

gas (LNG) despite a push by some member states, owing to fears

of not finding sufficient alternatives in time.