EU targets Russian energy and banks with latest sanctions package
European Commission president Ursula von der Leyen presented the EU's 18th package of sanctions against Russia on Tuesday. “Russia continues to bring death and destruction to Ukraine,” she said at a press conference in Brussels. “Our message is clear: This war must end.”
The most notable measure in the package is the proposal to lower the price cap on Russian crude oil. As the current price cap is 60 US dollars per barrel, reducing it to 45 dollars should ensure the measure has an impact, Von der Leyen said.
The EU intends to present the proposal at the G7 summit in Alberta, Canada, this weekend. Until now, US president Donald Trump has refrained from imposing any additional sanctions on Russia. However, von der Leyen believes that he can be convinced, she said on Tuesday.
Energy and finance
The sanctions package also includes a ban on the direct and indirect use of the Nord Stream I and II gas pipelines, which connect Russia and Germany. While they are currently non-operational, the EU wants to avoid restarting gas transit after the war ends. "There is no return to the past," von der Leyen said.
The EU also wants to cut 22 more Russian banks off from SWIFT, the banking system headquartered in Belgium. Additionally, the bloc is proposing an upgrade to the existing SWIFT access ban, which would result in a complete transaction ban. Russia's investment fund and financial players in third countries that help circumvent sanctions are also being targeted.
"There is no return to the past"
Furthermore, the Commission is once again targeting Russia's shadow fleet. It is proposing to add a further 77 ships to the blacklist, bringing the total to 342. Finally, new export bans worth more than 2.5 billion euros are being planned. These relate to machinery, metals, plastics, and chemical products.
However, EU member states still need to unanimously approve the new sanctions. Hungary has threatened to veto them on several occasions before ultimately giving the green light. In a recent resolution, the Slovakian parliament also spoke out against new sanctions.
PHOTO © Nicolas TUCAT / AFP
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