Unveiling details of the 18th round of economic sanctions imposed on Russia by Bloomberg
The European Union is deliberating on imposing a series of stringent sanctions against Russia as part of its 18th package. According to sources, the European Commission is holding consultations with EU member states regarding the disconnection of over 20 Russian banks from SWIFT, the international payment system, as well as lowering the price ceiling for Russian oil and imposing a ban on the Nord Stream gas pipelines.
The proposed measures aim to further impede Russia's revenue and access to necessary technologies for weapons production. The EU is also considering an additional ban on financial transactions for about two dozen banks and new trade restrictions worth around €2.5 billion.
One of the key points in the new package is the EU's intention to impose sanctions against the Nord Stream gas pipelines, reiterating its stance against resuming supplies of Russian pipeline gas. The European Commission is also planning to propose reducing the G7 price ceiling on Russian oil to approximately $45.
The US would need support to reduce the price ceiling, and the UK has called on its G7 partners to agree to this step, claiming it is necessary to increase pressure on Russian President Vladimir Putin to end the war in Ukraine.
Furthermore, the EU is considering further restrictions against banks that facilitate Russia's war efforts and the Russian Direct Investment Fund. In addition, provisions are being considered to protect European companies from arbitration claims under bilateral investment agreements in the new sanctions package.
Recent developments include the EU and UK implementing new sanctions, such as the EU's 17th package, which targeted Russia's shadow fleet and added more individuals and entities to the sanctions list. However, the exact details of the proposed 18th package, including the timing and implementation, are still under discussion.
It was previously announced on May 23 that the European Commission would hold closed consultations with EU member states on further sanctions against Russia.
The EU is contemplating an extended ban on financial transactions for several banks, in line with its politics, aiming to intensify the pressure on Russia's general-news status quo. In addition, the European Commission is planning to propose restrictions against banks aiding Russia's war efforts and the Russian Direct Investment Fund, as part of the upcoming sanctions package.
