EU presents 18th package of sanctions against Russia

European Commission President Ursula von der Leyen presented a proposal for a new package of sanctions against Russia. This is the 18th package and includes restrictions on energy and banks, as well as tighter export bans.

Von der Leyen announced the proposal in Brussels on Tuesday, June 10.

Sanctions against Russia

It was said, that for the first time, the proposal includes a ban on transactions related to Nord Stream 1 and Nord Stream 2. This means that no EU operator will be able to participate, directly or indirectly, in any transaction regarding the Nord Stream pipelines. 

"Oil exports still represent a third of Russia’s government revenues. We need to cut this source of revenues. The oil price cap is a G7 coalition measure, so we will discuss at the G7 in Canada at the end of this week or beginning of next week how to act together," von der Leyen told reporters.

Additionally, the European Commission is proposing sanctions on an additional 77 vessels that comprise Russia's "shadow fleet".

Banking Sector

The second part of the European Commission's sanctions will target the banking sector by limiting its ability to raise funds and conduct transactions.

The European Commission (EC) intends to expand the existing ban on the SWIFT system to include a total transaction ban for an additional 22 Russian banks.

They also plan to extend the ban to financial operators in third countries that finance trade with Russia by bypassing sanctions.

Additionally, they intend to impose restrictions on the Russian Direct Investment Fund, its subsidiaries, and investment projects.

Exports worth more than 2.5 billion euros

She said that €210 billion of reserves of the Central Bank of Russia were immobilized, while Russia’s oil and gas revenues had fallen by almost 80% compared to before the war. 

"Its deficit is sky rocketing. Interest rates are prohibitively high. Inflation is on the rise well above 10%. The price of importing technologies and critical goods is six times higher than before the war and compared to global average prices. In short, Russia’s economy is limited to a war economy and sacrificing future prospects," von der Leyen said.

Transaction Ban

The European Commission plans to expand the scope of the existing transaction ban. The list includes 22 Russian and foreign companies that provide direct or indirect support to the Russian military-industrial complex.

Earlier, it was reported that Ukraine paid the first installment of its debt to International Monetary Fund (IMF) on June 9.

Also, we shared photo and video reports on how Kyiv is still dealing with the aftermath of the massive air attack carried out by Russian occupiers on the night of June 10.