New wave of EU sanctions against Russia targeting energy and banks: “We want peace and we must apply pressure”

Ursula von der Leyen has announced that the European Union is preparing a new package of sanctions against the Kremlin, as negotiations between Russia and Ukraine show little sign of progress.

The President of the European Commission, speaking to reporters upon her arrival at the European Political Community meeting in Tirana, emphasized, “We seek peace and must apply pressure,” highlighting the need for firm measures.

Targeted Sanctions on Energy and Banks

Von der Leyen stated that the upcoming sanctions under consideration are more ambitious than those announced on Wednesday and will target critical areas of the Russian economy. These proposals include restrictions on the Nord Stream gas pipelines connecting Russia to Europe, the banking sector, and the so-called “shadow fleet” of older ships with ambiguous ownership and insufficient insurance used by Moscow to evade oil sanctions. Furthermore, the Commission plans to contemplate lowering the price cap for Russian crude oil, aligned with the G7 benchmark.

While these measures could significantly impact Russia’s energy and banking sectors, EU diplomats are cautious about their implementation due to expected opposition from Hungary. An EU diplomat shared with Politico, “These measures will have a substantial effect, but their passage will be difficult because of Hungary’s resistance.”

Collaboration with the US on Sanctions

When asked by Politico about U.S. support for the new sanctions, von der Leyen confirmed she is in regular contact with Republican Senator Lindsey Graham, a vocal critic of President Vladimir Putin. Graham has suggested imposing 500% tariffs on Russia, which von der Leyen characterized as a “coordinated approach.”

Despite Graham’s close ties to Donald Trump, the U.S. President has not yet publicly expressed support for such stringent measures against Russia. On Thursday, Trump stated that no progress towards peace in Ukraine could occur unless he met with Putin, while anticipated talks between Russia and Ukraine in Turkey seem to be collapsing, as the Russian president opted for a lower-level delegation instead of attending in person.

NATO Secretary General Mark Rutte described Putin’s absence from the negotiations as a “mistake,” whereas EU High Representative Kaja Kallas accused Moscow of “playing games.” Upon her arrival at the summit hosted by Albanian Prime Minister Edi Rama, Kallas remarked, “It’s clear that Russia does not seek peace, while everyone else does.”