FX.co ★ EU Rolls Out 18th Sanctions Package on Russian Energy, Banks

The European Commission has put forward an 18th set of sanctions against Russia due to its ongoing military actions in Ukraine. These new measures, introduced on Tuesday, seek to diminish Russia's energy revenue streams and clamp down on its banking and military sectors. Key components of the package include prohibitions on transactions related to Russia’s Nord Stream pipelines and expanded sanctions that now cover 22 additional Russian banks. This includes a comprehensive transaction ban that goes beyond their exclusion from the SWIFT network. Furthermore, the sanctions extend to certain banks in non-EU countries and include the Russian Direct Investment Fund (RDIF) and affiliated entities. RDIF's chief, Kirill Dmitriev, criticized the European Union's approach, interpreting it as an attempt to “prolong the conflict.” Additionally, the Commission has suggested reducing the current G7-imposed cap on the price of Russian crude oil from $60 to $45 per barrel. European Commission President Ursula von der Leyen noted that discussions about the oil price cap will occur at the upcoming G7 summit in Canada. Meanwhile, Ukrainian President Volodymyr Zelenskiy expressed approval of the new sanctions but called for greater specificity and advocated for a more stringent oil price cap at $30 per barrel. EU member states are set to deliberate on the proposal in the coming days.