On Tuesday 10 June, the President of the European Commission, Ursula von der Leyen, and the High Representative of the Union, Kaja Kallas, presented the 18th package of sanctions against Russia.
“As it is up to today not showing willingness to achieve peace, we will step up pressure on Russia, including through further robust sanctions”, Ms von der Leyen announced to the media.
In the energy sector, the European Commission is proposing a transaction ban for Nord Stream 1 and Nord Stream 2. “This means that no EU operator will be able to engage, directly or indirectly, in any transactions regarding the Nord Stream pipelines”, explained the President.
Lowering the Russian oil price cap from 60 to 45 dollars per barrel is also being proposed. “Since the oil cap was introduced in 2023, oil prices have gone down. They now trade very close to the cap level. By lowering the cap, we adapt it to changed market conditions and restore its effectiveness”, stressed Ms von der Leyen.
The Russian oil price cap is due to be discussed at the G7 summit in Canada later this week.
The Commission is also proposing to penalise a further 77 vessels in the ‘shadow fleet’. According to Kaja Kallas, the latest sanctions adopted against this ‘shadow fleet’ have led to a 30% reduction in revenues from oil exports from or via the Black and Baltic Seas.
A ban on imports of refined products based on Russian crude oil to prevent some Russian crude oil from reaching the EU market by indirect means is also on the table.
According to Ms von der Leyen, Russia still receives €1.2 billion a month in energy and fossil fuel revenues from the EU.
In addition to energy, the European Commission is attacking the Russian banking sector by proposing to transform the current ban on using the ‘SWIFT’ system into a total ban on transactions and to apply it to 22 additional Russian banks.
An extension of the ban on transactions to financial operators from third countries who finance trade with Russia by circumventing the sanctions is also being put forward, as is sanctioning the Russian Direct Investment Fund, its subsidiaries and its investment projects.
The Commission is also proposing new export bans worth over €2.5 billion. “We are targeting machinery, metals, plastics and chemicals. We are also restricting the export of dual-use goods and technologies that are used for producing drones, missiles, and other weapon systems”, added Ms von der Leyen.
The Commission is looking as well into the circumvention of sanctions already adopted by extending the ban on transactions already in force with 22 Russian and foreign companies, notably Chinese and Belarusian, “providing direct or indirect support to Russia’s military and industrial complex”.
The 18th sanctions package was due to be presented to the Member States’ ambassadors this evening. The Polish Presidency of the Council of the EU has already announced that it is working relentlessly to have the text adopted before the end of June. (Original version in French by Camille-Cerise Gessant)