EU: New package of sanctions against Russia focuses on energy and finance

The President of the European Commission, Ursula von der Leyen, together with the EU High Representative, Kaya Kalas, presented the Commission's proposal for the 18th package of sanctions against Russia, which targets its energy and financial sectors.

The Commission President reiterated the EU's call to Moscow for a "full and unconditional ceasefire, of at least 30 days" in Ukraine.

"Our message is very clear: this war must end. A real ceasefire is needed and Russia must sit at the negotiating table with a serious proposal," she said.

'We want peace for Ukraine'

"We want peace for Ukraine, but despite weeks of diplomatic efforts, despite Ukrainian President Zelensky's proposal for an unconditional ceasefire, Russia continues to bring death and destruction to Ukraine," von der Leyen emphasized, noting that

"Russia does not want peace", but "to impose the law of force". Therefore, the EU will increase the pressure because "force is the only language that Russia understands", added the Commission President.

In particular, in the energy sector, the Commission is proposing for the first time to impose a ban on transactions for the NorthStream I and II pipelines. "No EU operator will be able to engage directly or indirectly in any transaction related to the NorthStream pipelines," von der Leyen said.

In addition, the Commission proposes to reduce the maximum price for Russian oil from $60 to $45 per barrel - an issue that von der Leyen said would be discussed at the G7 Summit to be held at the end of the week in Canada.

In addition, the Commission proposes to add to the list of 342 tankers another 77 tankers belonging to Russia's so-called "shadow fleet", which helps it circumvent Western sanctions.

A ban on the import of refined products based on Russian crude oil has also been proposed "to prevent part of Russian crude oil from entering the EU market through the back door," Ursula von der Leyen said.
In the banking sector

In the banking sector, the EU aims to limit Russia's ability to raise capital and conduct transactions. The Commission proposes that the existing SWIFT ban be transformed into a complete transaction ban and implemented in 22 other Russian banks. In addition, the Commission proposes to extend the transaction ban to financial institutions in third countries that finance trade with Russia by circumventing sanctions. It also proposes to impose sanctions on the Russian Direct Investment Fund, its subsidiaries and its investment projects. "This will limit an important channel for financing projects to modernize the Russian economy and strengthen its industrial base," von der Leyen said.

Recently, the Commission is proposing further export bans worth more than €2.5 billion. "This ban will deprive the Russian economy of technology and critical industrial goods," von der Leyen said, noting that machinery, metals, plastics and chemicals are targeted. The export of dual-use goods and technologies used to produce drones, missiles and other weapons systems will also be restricted, to ensure that Russia does not find ways to modernize its weapons with European technology.

In conclusion, von der Leyen said that "we want sanctions to be better implemented and respected", which is why the Commission is proposing to expand the scope of the trade ban that already exists to 22 Russian and foreign companies that provide direct or indirect support to Russia's military-industrial complex.

"Putin's ability to continue the war depends to a large extent on the support he receives from third countries. Those who support Russia's war and its attempt to invade Ukraine bear a great responsibility," von der Leyen said.