Unleashing the Financial Bite: EU's Fresh Sanctions Hammering Putin's Economy
EU nations aim to inflict economic harm on Putin by reducing crude oil prices
Months after German Chancellor Merz's meet in Kyiv, the EU Commission unveils the ol' 18th sanctions salvo against Russia. Ursula von der Leyen, the EU Commission President, is all about delivering a tougher blow to Russia's finances, the oil sector, and the banking industry.
The EU Commission drops its sanctions game plan in Brussels, and von der Leyen doesn't mince words, "We crank up the heat on Russia, 'cause that's the only language they fathom." The plan includes tighter controls on oil prices, the Russian 'ghost' fleet, and the banking sector.
The EU, G7 countries, and Australia agreed on a Russian oil price ceiling back in 2022 to decrease Moscow's earnings from energy exports. To adjust to market shifts, von der Leyen suggests reducing the oil price cap from $60 a barrel to a more modest $45 (around €40).
Since the introduction of the price cap, the global market price for crude oil has hovered around and even dipped below the $60 mark. The reduction will be up for discussion at the G7 summit next week in Alberta, Canada. Von der Leyen insists she's always got her bets on achieving this goal.
In addition to these measures, von der Leyen also announces further sanctions for an additional 77 vessels of the 'ghost' fleet and the addition of 22 more Russian banks to the sanctions list. The Commission President also reveals further export restrictions on machinery, metals, plastics, and chemicals, plus dual-use goods and technologies that can be used in drones, rockets, and weapon systems production.
Over the weekend, Lithuanian President Gitanas Nauseda criticized the lack of follow-through on the sanctions threats during German Chancellor Friedrich Merz's visit to Kyiv a month ago. "That, my friends, is a problem," said Nauseda to "Bild am Sonntag." "And it's not just a credibility issue for our sanctions but for all our measures towards Russia and our support for Ukraine." Nauseda laments the fundamental obstacles faced in executing European sanctions against Russia. The measures in the 18th sanctions package need to be comprehensive, he urges.
Sources:
- ntv.de
- mau/AFP
Key Terms:
- EU
- EU Commission
- EU Commission President
- Sanctions
- Ghost Fleet
The EU Commission President, Ursula von der Leyen, emphasizes the importance of delivering a stronger economic blow to Russia through the newly announced 18th sanctions package, which includes targeting the oil sector, banking industry, and 'ghost' fleet. Furthermore, in the realm of community policy and general-news, this package also includes additional sanctions for 77 vessels of the 'ghost' fleet, 22 more Russian banks, and further export restrictions on various goods and technologies.
In light of German Chancellor Friedrich Merz's visit to Kyiv and Lithuanian President Gitanas Nauseda's criticism of insufficient follow-through on sanctions threats, the comprehensiveness of the measures in the EU's 18th sanctions package comes under scrutiny, as it is essential to maintain both the credibility of the sanctions and the overall support for Ukraine.
