Today, European Commission President Ursula von der Leyen, alongside EU High Representative Kaya Kalas, unveiled the Commission’s proposal for the 18th sanctions package against Russia, focusing on its energy and financial sectors.
President von der Leyen reiterated the EU’s demand for a “full and unconditional ceasefire of at least 30 days” in Ukraine. “Our message is unequivocal: this war must come to an end. We need a genuine ceasefire, and Russia must engage in serious negotiations,” she stated.
“We seek peace for Ukraine, yet despite extensive diplomatic efforts and Ukrainian President Zelensky’s call for an unconditional ceasefire, Russia continues to bring suffering and devastation,” von der Leyen remarked, emphasizing that “Russia does not desire peace” but aims to “impose its will through force.” Therefore, the EU will enhance its pressure because “force is the only language that Russia understands,” she added.
In a significant move regarding energy, the Commission proposes a trade ban on the NorthStream I and II pipelines for the first time. “No EU operator will be permitted to partake in any transactions related to the NorthStream pipelines,” von der Leyen announced.
The Commission is also advocating for a reduction of the Russian oil price cap from $60 to $45 per barrel, which von der Leyen noted will be discussed at the upcoming G7 summit in Canada.
Furthermore, the proposal includes adding 77 tankers from Russia’s “shadow fleet” to the existing list of 342, aiming to tackle the circumvention of Western sanctions.
A ban on imports of refined products derived from Russian crude oil is also on the table “to prevent some Russian oil from entering the EU market through back channels,” von der Leyen stated.
In the finance sector, the EU aims to restrict Russia’s ability to raise funds and facilitate transactions. The Commission suggests transforming the current ban on the SWIFT system into a complete trade ban affecting 22 additional Russian banks. Moreover, the ban would extend to financial institutions in third countries that aid in circumventing sanctions. The proposal includes sanctions against the Russian Direct Investment Fund, its subsidiaries, and investment projects, which would limit a key source of funding for modernizing the Russian economy and bolstering its industrial base, according to von der Leyen.
Finally, the Commission has put forth additional export bans exceeding €2.5 billion. “This ban aims to deny the Russian economy vital technology and industrial goods,” von der Leyen explained, highlighting the targeted sectors, including machinery, metals, plastics, and chemicals. The restrictions will also cover dual-use goods and technologies related to drones, missiles, and weapon systems to prevent Russia from enhancing its military capabilities with European technologies.
In conclusion, von der Leyen stated, “We want sanctions to be enforced and upheld more effectively.” The Commission plans to widen the trade ban’s scope to include 22 Russian and foreign companies that directly or indirectly support Russia’s military-industrial complex. “Putin’s capacity to sustain the war heavily depends on the assistance he receives from third countries. Those supporting Russia’s aggression and conquest of Ukraine carry significant responsibility,” she remarked.
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