Brussels (Brussels Morning Newspaper) – According to Bloomberg, the European Union is contemplating a strategy to cut off more than 20 Russian banks from SWIFT, the international financial messaging service, as part of its forthcoming 18th sanctions package against Russia.
The suggested actions arise alongside renewed international attempts to mediate a ceasefire between Russia and Ukraine. Although Trump has advocated for direct peace negotiations, Russia persists in dismissing a U.S.-endorsed 30-day ceasefire proposal.
The discussions arise as the European Union approved its 17th package of sanctions against Russia on May 20, mainly focusing on the Russian shadow fleet of oil tankers. While praised in Brussels as a demonstration of ongoing commitment, the package has faced criticism, including from certain EU insiders, who argue that it is a weak measure that does not meet the necessary urgency.
How strong is the EU’s 18th sanctions package?
As reported by Bloomberg, the proposed measures would also involve reducing the Group of Seven (G7) oil price cap on Kerlmin crude exports from $60 to roughly $45 per barrel, banning the Nord Stream gas pipelines, and implementing about 2.5 billion euros in new trade sanctions.
The EU Commission is reviewing the proposals in consultation with member states. To impose EU sanctions, unanimous approval from all 27 nations is necessary, and the details of the package may still be altered before formal adoption.
Why is the EU targeting Russian banks in sanctions?
The initiative seeks to reduce Russia’s income sources and restrict its access to essential Western technologies for weapon manufacturing. The suggested decrease in the oil price cap, a crucial aspect of the G7’s unified sanctions strategy, requires backing from the United States, which has thus far refrained from imposing further sanctions under President Donald Trump despite ongoing tensions.
Bloomberg also reported that the EU is set to widen its restrictions on Russia’s shadow fleet of oil tankers, extend prohibitions on banks supporting Moscow’s military actions, and focus on the Russian Direct Investment Fund. The EU Commission is reportedly advocating for provisions that protect European companies from arbitration claims arising from bilateral investment treaties impacted by the sanctions.
What role does Trump play in sanction strategy?
On May 20, The New York Times reported that Trump declined to implement further sanctions on Russia, expressing worries that such actions might threaten potential business and trade relations with Moscow.
After a two-hour conversation with Russian President Vladimir Putin, Trump remarked that sanctions might “make it much worse,” although he did not completely dismiss them.
