The European Union has announced a new package of sanctions against Russia, marking the 18th round since the country’s full-scale invasion of Ukraine in 2022. European Commission President Ursula von der Leyen stated that these sanctions are necessary because “strength is the only language that Russia will understand.” Von der Leyen emphasized that despite diplomatic efforts and Ukraine’s offer of an unconditional ceasefire, Russia continues to prioritize imposing its rule through might, resulting in ongoing death and destruction in Ukraine.
The new sanctions package aims to further target Russia’s ability to generate revenue from oil and gas production. Key measures include lowering the price cap on Russian oil exports from $60 to $45 per barrel and introducing a full transaction ban on Russian banks and financial institutions in third countries that aid Russia in circumventing existing sanctions. Additionally, the EU proposes banning the use of Russian energy infrastructure, specifically targeting transactions involving the Nord Stream pipelines.
The decision to target Russia’s energy sector stems from oil exports accounting for one-third of the Russian government’s revenue. Von der Leyen stressed the need to cut this revenue source, explaining that the initial oil price cap introduced by the EU and G7 countries in December 2022 has become less effective due to falling global oil prices. The price of a barrel of Brent crude has dropped 18% since the price cap took effect.
The EU also seeks to harden sanctions on Russia’s banking sector by preventing EU operators from conducting transactions with sanctioned Russian banks and extending the transaction ban to financial institutions in third countries that help Russia evade sanctions. Furthermore, the sanctions package will broaden the ban on exporting materials and technologies to Russia, aiming to prevent the country from modernizing its weapons with European technologies.
The new package will need approval from the EU’s 27 member states, which might be complicated due to concerns raised by pro-Kremlin governments like Hungary and Slovakia. Despite previous threats to block new sanctions, these countries have ultimately voted in favor of them. The EU’s actions underscore its commitment to pressuring Russia amid ongoing conflict.