EU Considers Exclusion of 20 Russian Banks from SWIFT as Part of New Sanctions Package
The European Union aims to intensify economic pressure on Russia amid ongoing hostilities in Ukraine.
BRUSSELS – As part of a new sanctions package targeting Russia, the European Union (EU) is considering the exclusion of 20 Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.
This move comes as the EU also contemplates additional measures such as lowering the price cap on Russian oil and banning operations related to the Nord Stream gas pipeline, with the objective of increasing pressure on Moscow to end its military aggression in Ukraine.
The proposed sanctions require the unanimous support of all EU member states.
In addition to the bank exclusions, the EU is evaluating transaction bans for various financial entities and implementing new trade restrictions estimated at around €2.5 billion.
These measures aim to further diminish Russia's revenue and its capacity to procure technology essential for military production.
Among the sanctions under discussion is a reduction of the price cap on oil set by the Group of Seven (G7) to approximately $45 per barrel.
This initiative may necessitate support from the United States, according to information sourced from knowledgeable insiders.
These discussions on new sanctions coincide with former U.S. President Donald Trump's calls for direct talks between Moscow and Kyiv to negotiate a ceasefire and pursue peace agreements.
Trump has typically refrained from imposing new sanctions on Russia, despite occasionally threatening to do so, while sanctions already enacted under President Joe Biden remain in effect.
The EU's plan to sanction the Nord Stream pipeline has received backing from Germany.
However, there are growing speculations about a possible revival of the pipeline project amid Trump's efforts to mediate a peace deal between Russia and Ukraine.
Even without a formal ban, the activation of Nord Stream 2, which has been constructed but remains unverified by Germany and partially damaged due to explosions in 2022, is unlikely to occur in the near future.
Moreover, the EU is considering expanding sanctions to include Russia’s Direct Investment Fund, the shadow oil fleet, and is discussing imposing restrictive measures on financial institutions believed to be supporting Moscow’s war efforts.
This move comes as the EU also contemplates additional measures such as lowering the price cap on Russian oil and banning operations related to the Nord Stream gas pipeline, with the objective of increasing pressure on Moscow to end its military aggression in Ukraine.
The proposed sanctions require the unanimous support of all EU member states.
In addition to the bank exclusions, the EU is evaluating transaction bans for various financial entities and implementing new trade restrictions estimated at around €2.5 billion.
These measures aim to further diminish Russia's revenue and its capacity to procure technology essential for military production.
Among the sanctions under discussion is a reduction of the price cap on oil set by the Group of Seven (G7) to approximately $45 per barrel.
This initiative may necessitate support from the United States, according to information sourced from knowledgeable insiders.
These discussions on new sanctions coincide with former U.S. President Donald Trump's calls for direct talks between Moscow and Kyiv to negotiate a ceasefire and pursue peace agreements.
Trump has typically refrained from imposing new sanctions on Russia, despite occasionally threatening to do so, while sanctions already enacted under President Joe Biden remain in effect.
The EU's plan to sanction the Nord Stream pipeline has received backing from Germany.
However, there are growing speculations about a possible revival of the pipeline project amid Trump's efforts to mediate a peace deal between Russia and Ukraine.
Even without a formal ban, the activation of Nord Stream 2, which has been constructed but remains unverified by Germany and partially damaged due to explosions in 2022, is unlikely to occur in the near future.
Moreover, the EU is considering expanding sanctions to include Russia’s Direct Investment Fund, the shadow oil fleet, and is discussing imposing restrictive measures on financial institutions believed to be supporting Moscow’s war efforts.
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