The European Commission is already preparing its 18th package of sanctions against Russia, which will disconnect about 20 banks from the SWIFT payment system and impose trade bans exceeding €2.5B in value. The EU also intends to impose sanctions on the Nord Stream gas pipeline projects for the first time. Simultaneously, Brussels is considering additional sanctions targeting the Russian shadow fleet and restrictions on funds that support the Kremlin’s military efforts.
The EC is conducting closed consultations with EU countries regarding a new sanctions package. They also plan to lower Russian oil price cap to about $45 per barrel (currently $60). However, lowering the price ceiling will likely require support from the US. Washington has not yet backed the EU initiative to reduce the price ceiling even to $50, as the current decline in oil prices is reportedly impacting the Russian economy. Brent oil prices are currently around $64 per barrel, while Russian Urals oil is $10 cheaper.
Meanwhile, the G7 finance ministers have condemned Russia’s war against Ukraine and threatened Moscow with stricter sanctions if a ceasefire is not reached.