CNN
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The European Union announced a new sanctions package against Russia on Tuesday, saying that despite recent diplomatic efforts, Moscow’s daily deadly attacks on Ukraine showed no interest in peace.
The 18th new package since Russia launched a full-scale unprovoked invasion of its neighbors in 2022 is designed to further target the Kremlin’s ability to make money from oil and gas production.
The proposal includes lowering the price cap for Russian oil exports from $60 per barrel to $45, and introducing a complete trading ban on third-country Russian banks and financial institutions that will help Russia avoid existing sanctions.
The EU also suggests banning the use of Russia’s energy infrastructure, prohibiting EU operators from directly or indirectly involved in all transactions, including node stream pipelines.
The new package must be approved by 27 EU member states. It could be complicated by previous concerns raised by more Kremlin governments, such as Hungary and Slovakia, about further sanctions targeting Russia.
These countries have previously threatened to block new sanctions, but so far they have ultimately voted in their favour.
The European Commission president Ursula von der Leyen said sanctions are “strength is the only language that Russia understands.”
“We want peace in Ukraine. Despite weeks of diplomatic attempts, Russia continues to bring death and destruction to Ukraine despite the unconditional ceasefire of the President of (Ukrainian) (Voldiemi) Zelensky. Russia’s goal is not peace.
Last month, leaders from Germany, France, the UK and Poland told Russian leader Vladimir Putin to agree to a 30-day ceasefire or face “large” sanctions. Putin ignored the ultimatum and instead proposed a “in-person meeting” between Moscow and Kiev.
However, two rounds of talks in Turkey’s Istanbul revealed that Russia is sticking to its biggest demand, essentially equivalent, for Ukraine’s surrender.
“Russia’s ability to continue the war is equivalent to its ability to sell oil and bypass financial barriers,” Zelensky said Tuesday night, calling the European sanctions package a “critical step” and also denounced the lack of similar measures from the US.
“Russia has been constantly increasing the number of ammunition for its strikes. This is a steady trend, meaning that Moscow is afraid of anyone in the world,” the Ukrainian leader added.
“President Putin wants to continue killing and takes advantage of the fact that he hasn’t received a strong response. He hasn’t heard of Washington, and this speaks volume to the world, everyone.”
Explaining why the EU targeted Russia’s energy sector, the committee chief said oil exports still represent a third of the Russian government’s revenue.
“We need to cut this revenue stream,” she said.
The oil price cap was introduced in December 2022 by the EU and G7 countries.
The CAP, which applies to Russian maritime oil exports, prohibits Western companies from providing the transportation, insurance and other services necessary to export fuel unless below the threshold.
By enforcing the price cap, the EU and its allies have sought to reduce the Kremlin’s important revenue streams while simultaneously allowing oil to flow into the global energy market.
Von Der Leyen said Tuesday that global oil prices have fallen since the cap was first introduced, and now they’ve been trading “very close” to the $60 level, so the price cap needs to drop.
The global oil benchmark Brent crude barrel price has fallen 18% since the Russian crude price cap came into effect on December 5, 2022.
The Bloc also wants to step up sanctions on Russia’s banking sector. Shortly after the invasion, the US, the EU, the UK and Canada jointly banned Russian banks from Swift Messaging Services, a high-security network that connects thousands of financial institutions around the world. This has made it much more difficult for these banks to send and receive money from overseas.
Now, the committee wants to go a step further and prevent EU operators such as AA businesses from carrying out transactions on a list of authorized Russian banks. They will also add 22 of Moscow’s banks to that list. Additionally, the bloc wants to extend the trading ban on third-country financial institutions that will help Russia avoid existing sanctions.
Von Der Leyen said the latest sanctions package will also expand the current ban on materials and technologies that can be exported to Russia, “I want to make sure Russia cannot find a way to modernize its weapons with European technology.”
The sanctions also include new measures against 22 Russian and foreign companies that provide direct or indirect support to Russian military and industrial facilities.
CNN’s Victoria Butenko contributed to this report.
