The EU Commission proposes in the 18th sanctions package to target the Russian energy and banking sectors. This is done as a response to Russia's new major attacks with drones and missiles on Ukraine. This was announced by the President of the EU Commission, Ursula von der Leyen, at a press conference in Brussels on Tuesday.
- The war must end. We need a genuine ceasefire. But Russia has shown no signs that they want peace. That is why we will increase the pressure on Russia with more robust sanctions, says Ursula von der Leyen.
Among other things, the EU Commission will lower the price ceiling on Russian oil. The current G7 price ceiling is $60 per barrel. Ukraine has advocated that the ceiling be lowered to $30 per barrel. However, the EU Commission will not go that far, instead proposing a cap of $45.
The oil price cap was agreed in 2022 and is set at a level that will reduce Russia's revenues while keeping global energy markets stable through continued supplies.
The price cap prohibits trade in Russian crude oil transported by tankers if the price paid is above $60 per barrel.
The price cap also prohibits shipping, insurance and reinsurance companies from handling cargoes of Russian crude oil worldwide unless it was sold at a price lower than the price cap.
Will hit Russia's earnings
By lowering the price cap, Russia's earnings will fall further. This could bring Russia to the negotiating table, believes EU foreign policy chief Kaja Kallas.
- The price for Russia must rise the longer they continue the war. Together with the US, we can really put pressure on Russia's earnings, says Kaja Kallas.
Here the hope is that the G7 countries will all agree to lower the oil price ceiling. This means that the decision is effectively out of the EU's hands. The other proposals in the sanctions package will require support from the 27 EU countries.
Here the EU Commission is again proposing to hit Russia's shadow fleet, which transports oil around existing sanctions. The EU Commission will specifically add 77 more ships to the list, bringing the total to over 400 ships.
When it comes to the banking sector, the EU Commission is proposing to add 22 more banks to the list of institutions subject to sanctions that limit their access to the international payment system Swift.
- With this package, we are increasing the pressure on Russia. We reiterate our call for an unconditional ceasefire for 30 days so that real peace negotiations can begin, says Ursula von der Leyen.
Major Russian attacks
The proposal comes after the Ukrainian capital, Kyiv, was subjected to one of the largest Russian attacks so far during the more than three-year war on Tuesday night.
According to Ukrainian President Volodymyr Zelenskyj, Russia used a total of 315 drones in the attack. Among them were 250 Shahed drones, developed by Iran.
Seven missiles were also fired at Ukraine, two of which were ballistic missiles produced in North Korea, Zelensky writes.
The extensive attack on Kyiv came just a day after Russia carried out the most extensive drone attack on Ukraine since the start of the war in February 2022.
479 drones and 20 missiles were sent against Ukraine in a massive attack on Monday night.
460 of the drones and 19 of the missiles were shot down before they reached their targets, the Ukrainian Air Force announced, according to the Reuters news agency.
On Tuesday, Zelensky called on the rest of the world to respond strongly to the Russian attacks.
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