The European Commission has announced its latest package of sanctions against Russia, focusing on energy exports, financial institutions, and key industries, as part of ongoing efforts to pressure Moscow to end its war in Ukraine.
On Tuesday, the European Commission introduced a new set of sanctions intended to further isolate Russia’s economy and hamper its ability to wage war in Ukraine. The measures target Russia’s energy exports, infrastructure, and financial institutions, and are designed to increase the economic pressure on Moscow.
Key proposals include lowering the oil price cap from $60 to $45 per barrel and banning the use of the Nord Stream pipelines to transport gas between Russia and Germany. The sanctions package also calls for cutting off 22 additional Russian banks from the SWIFT international banking system, expanding the current partial ban into a “full transaction ban,” according to Commission President Ursula von der Leyen.
Von der Leyen labeled the new sanctions as “robust” and “hard-biting,” and stated that Russia’s economy is already feeling the effects of previous EU measures. “Russia continues to bring death and destruction to Ukraine… Our message is clear: This war must end,” von der Leyen said at a joint press conference with EU diplomat Kaja Kallas.
Kallas added that “it is clear that Russia does not want peace” and must pay a price for its “outright illegal” war, describing Russia as “cruel, aggressive and a danger to us all.”
The EU is working to build support in Washington for these new measures, which come in advance of a G7 summit in Alberta, Canada, where Ukraine is also invited. The reduced oil price cap will be discussed at the summit, as the EU cannot adjust it unilaterally.
EU member states are expected to approve the sanctions swiftly, with a deal likely before the end of the month. Ignacy Niemczycki, Polish Secretary of State for European Affairs, expressed optimism about reaching an agreement.
Further provisions in the package include extending the current ban on Russian crude oil imports to cover oil products refined from it in third countries, and adding 77 vessels to the list of Russia’s “shadow fleet,” barring them from European ports.
The European Commission also proposed sanctions on the Russian Direct Investment Fund, Moscow’s sovereign wealth fund, to block funding for projects aimed at modernizing the Russian economy. A €2.5 billion export ban on machinery, metals, plastics, chemicals, and dual-use technology used in weapons systems is also included in the package. Von der Leyen emphasized that these measures are intended to prevent Russia from modernizing its weapons with European technologies.
Von der Leyen noted that Russia’s energy export revenues to Europe have dropped from €12 billion per month before February 2022 to €1.8 billion per month as a result of sanctions.
The latest, 18th sanctions package will be aligned with further measures being discussed in the United States. US Senator Lindsey Graham has proposed a 500% tariff on countries buying Russian fossil fuels, though the White House has not endorsed this plan.
