New EU sanctions are set to target Russia’s energy and banking sectors

Brussels – EU Commission President Ursula von der Leyen has presented a proposal for an 18th sanctions package due to the ongoing Russian war of aggression against Ukraine. “We are essentially targeting two sectors, the Russian energy sector and the Russian banking sector,” she said in Brussels.

“For the first time, we are proposing a transaction ban for Nord Stream 1 and Nord Stream 2. This means that no EU operator may be directly or indirectly involved in transactions related to the Nord Stream pipelines – there is no going back to the past.” 

Ursula von der Leyen, EU Commission President

The sanctions against Nord Stream would be rather symbolic in nature, as no gas is currently flowing to Europe through the pipes in the Baltic Sea. One of the two pipes of Nord Stream 2 was destroyed in an attack in September 2022, as were the strands of the already operational Nord Stream 1 pipeline.

The EU Commission can prepare a sanctions package. The EU member states must vote on it.

Oil Price as a Pressure Tool

Furthermore, von der Leyen proposed to lower the cap on the oil price from $60 to $45 per barrel. Oil exports still account for a third of Russia’s state revenues. “The oil price cap is a measure of the G7 coalition, so we will discuss how we want to proceed together at the G7 summit in Canada at the end of this week or the beginning of next week,” said the Commission President.

The summit of the seven western industrial nations (G7) will take place from June 15 to 17 in Canada. Members of the “Group of Seven” are Germany, France, the United Kingdom, Italy, Japan, Canada, and the USA. US President Donald Trump is also expected.

A new sanctions package is currently being prepared in the US Senate as well. Recently, Trump has been cautious regarding new sanctions against Russia, while also increasing pressure on Kremlin chief Vladimir Putin. (June 10)