EU Unveils 18th Sanctions Package Against Russia
The 18th package of sanctions against Russia proposed by the European Commission will include measures aimed primarily at the Russian energy and banking sectors, as well as tighter export bans and controls on sanctions circumvention, European Commission President Ursula von der Leyen said on June 10 in Brussels.
The Gaze reports on this with reference to European Pravda.
The European Commission President emphasized that the 18th package of sanctions against the Kremlin will mainly affect Russian banks and the Russian energy sector.
“We are now proposing the 18th package of tough sanctions. We are targeting two sectors in particular: the Russian energy sector and the Russian banking sector. We are extending export bans and controls, and we are strengthening measures to counter circumvention,” von der Leyen said.
“For the first time, we are proposing to ban transactions related to Nord Stream 1 and Nord Stream 2. This means that no EU operator will be able to participate directly or indirectly in any transaction related to the Nord Stream pipelines. There is no going back,” she said.
According to her, the European Commission also proposes to “lower the upper limit on oil prices from $60 to $45 per barrel.”
"Since the introduction of the upper limit on oil prices in 2023, oil prices have fallen. They are now trading very close to the limit. By lowering the cap, we have adapted to changed market conditions and restored its effectiveness. Oil exports still account for a third of Russia's state revenues. We need to reduce this source of income,” Ursula von der Leyen explained.
She clarified that “the oil price cap is a G7 coalition measure, so we will discuss how to act together at the G7 summit in Canada early next week.”
“To better ensure compliance with the upper limit, in addition to the 342 vessels already listed, today we are adding another 77 vessels that are part of the Russian shadow fleet. These vessels are a means of circumventing sanctions,” said the President of the European Commission.
The EC also proposes to introduce a ban on imports of petroleum products produced from Russian oil: “In this way, we want to prevent part of Russian crude oil from entering the EU market through a ‘back door’.
The second part of the sanctions concerns the banking sector, in particular ”restricting its ability to raise funds and carry out transactions.”
“We propose to transform the existing ban on the use of the SWIFT system into a complete ban on transactions. And we propose to apply such a ban on transactions to 22 more Russian banks,” von der Leyen said.
“We also propose to extend the transaction ban to financial operators in third countries that finance trade with Russia in circumvention of sanctions. We also propose to impose sanctions against the Russian Direct Investment Fund, its subsidiaries, and investment projects,” she added.
The third point, according to Ursula von der Leyen, is further export bans worth more than €2.5 billion. This ban deprives the Russian economy of critical technologies and industrial goods.
"We are targeting machinery, metals, plastics, and chemicals. These are used as raw materials in industry. We are also restricting the export of dual-use goods and technologies used in the production of drones, missiles, and other weapons systems. We want to make sure that Russia does not find ways to modernize its weapons with European technology,” the European Commission president clarified.
Fourth and last: we want our sanctions to be better enforced and complied with, the EU is convinced.
"That is why we are expanding the scope of the existing transaction ban. We have added 22 Russian and foreign companies that provide direct or indirect support to the Russian military-industrial complex to the list. Putin's ability to continue the war depends heavily on the support he receives from third countries. Those who support Russia's war and efforts to conquer Ukraine bear a heavy responsibility,” von der Leyen said.
“Our goal is very clear. We reiterate our call for a complete and unconditional ceasefire for at least 30 days. This pause in hostilities could be a vital step towards reducing the suffering of the civilian population and creating space for meaningful negotiations to achieve genuine peace,” she stressed.
Immediately after the official presentation of the draft 18th package of sanctions against Russia, the European Commission forwarded it to the EU Council, where discussions will begin on Tuesday, June 10, at a meeting of the Committee of Permanent Representatives (Coreper II).
As The Gaze reported earlier, in May, the European Union approved a new package of sanctions against Russia, the 17th in a row since the start of the full-scale invasion of Ukraine.