The European Commission is actively working on the 18th sanctions package against Russia, which will include disconnecting around 20 banks from the SWIFT payment system, as well as trade bans totaling over 2.5 billion euros. As part of this package, the EU intends to impose sanctions for the first time on the ‘Nord Stream’ pipeline projects.
This is reported by Finway
Brussels is also considering the possibility of introducing additional sanctions against the so-called ‘shadow fleet’ and restrictions on funds that support the Kremlin’s military efforts. The European Commission is conducting closed consultations with member states regarding the new sanctions package.
Lowering Oil Prices from Russia
Among the planned measures is a reduction of the price cap on oil from Russia to approximately $45 per barrel, while it currently stands at $60. However, this initiative will likely require support from the United States. Currently, Washington does not support the EU’s plans to lower the price cap even to $50, as falling oil prices are already negatively impacting the Russian economy.
Situation in the Oil Market
At the moment, Brent crude oil prices are around $64 per barrel, while Russian Urals oil costs $10 less. Meanwhile, finance ministers from the G7 countries condemned Russia’s war against Ukraine and warned Moscow of the possibility of increased sanctions if there are no agreements on a ceasefire.
“If a ceasefire is not agreed upon, sanctions will be intensified.”