The European Union (EU) is considering eliminating more than 20 other banks from the international Swift payment system. It is also planning to reduce the price ceiling for Russian oil and the Nord Stream pipeline ban as part of the new sanction package aimed at increasing the pressure on Moscow to end the war against Ukraine. TASR informs Bloomberg.
According to sources familiar with plans that did not want to be appointed, the European Commission consults these proposals with Member States. The decision to timing possible restrictions has not yet been taken. EU sanctions require support for all Member States and may change before they are formally submitted and approved.
The EU is considering other transactions for approximately two dozen banks and new trade restrictions worth approximately € 2.5 billion, as it seeks to further limit Russia’s income and its ability to get to the technologies needed to produce weapons.
Will also reduce the ceiling to oil prices
Within the package discussed, the Commission plans to propose to reduce the ceiling of the G7 group (USA, Canada, Japan, Britain, Germany, Italy and France) for oil prices for approximately $ 45 (€ 39.82) per barrel (159 liters) from the current $ 60.
This step is likely to require US support. Thus, within the agreed system, transport and insurance service providers can offer service to customers of Russian oil only if its price is lower than this ceiling.
This week, G7 finance ministers did not reach an agreement to reduce the ceiling this week at a meeting in Banff, Canada.
The US is urging Moscow
Discussions come at a time when US President Donald Trump urged Moscow and Kiev to conduct direct talks about ceasefire and peace agreement. Meanwhile, Trump is avoiding the imposition of new sanctions on Russia, even though he has threatened them several times. The sanctions introduced as former US President Joe Biden are in force.
However, in the case of Nord Stream pipelines, the EU sanction plan has received Germany’s support. The new German Chancellor Friedrich Merz recently said that it supports the proposal of the Commission “start working on European measures against Nord Stream pipelines”.
Sanctions could stop the debates to revive these gas pipelines, which intensified when Trump tried to convey peace between Russia and Ukraine. However, even without a formal prohibition, it is unlikely that the Nord Stream pipeline, which was partially damaged by explosions in 2022, would be activated in the foreseeable future.
Europe is eliminating Russian fossil fuels
Sanctions would supply the weight of Europe that it does not want any meaningful return of Russian pipelines. By the end of 2027, the European block plans to eliminate Russian fossil fuels.
In addition, the EU is trying to extend its sanctions to the Russian shadow fleet of oil tankers and is considering further limitations for creditors who allegedly help the war efforts of Moscow, as well as the Russian Foreign Foreign Investment Fund, the resources said.
The block wants to include a clause to protect European companies from arbitration under bilateral investment contracts in its next penalty package, which will be 18.
