Introduction
The European Commission has introduced an 18th package of sanctions against Russia in response to its invasion of Ukraine. This initiative focuses on cutting Moscow's energy revenues, targeting its banks, and impacting its military industry.Context
On June 10, European Commission President Ursula von der Leyen announced the new sanctions, which aim to prohibit transactions involving Russia's Nord Stream gas pipelines and banks that violate existing sanctions.Developments
Additionally, the sanctions propose reducing the Group of Seven nations' (G7) price cap on Russian crude oil from $60 to $45 per barrel. This move is intended to decrease Russia's energy revenues further. Von der Leyen indicated that this oil price cap would be a topic of discussion in an upcoming G7 meeting, emphasizing the importance of G7 unity in implementing such measures.The proposal also includes adding more vessels involved in Russia's shadow fleet and oil trading companies to the list of entities under sanctions. Kaja Kallas, the EU's chief diplomat, stated that the upcoming round of EU sanctions will primarily target Russia's energy revenue, its military industry, and the banking sector.
EU member states are set to begin discussions on the proposal this week.