The EU is already working on the 18th sanctions package against Russia, which will include a lower price cap, sanctions on the Nord Stream 1 and 2 gas pipelines, more shadow fleet tankers designated, and additional sanctions on the Russian financial sector, European Commission President Ursula von der Leyen said on Friday.
Representatives of the EU’s 27 member states have just approved the 17th package of sanctions package against Russia, targeting another nearly 200 tankers of the shadow fleet Russia uses to ship its oil to markets.
The 17th sanctions package is expected to be officially endorsed and adopted by a meeting of the EU’s defense ministers on Tuesday next week.
Even before the 17th package is officially adopted, von der Leyen pitched the 18th package, aimed at forcing Russian President Vladimir Putin to accept an unconditional 30-day ceasefire and peace talks.
“Putin doesn’t want peace. So we have to increase the pressure,” von der Leyen said on the sidelines of a summit of European leaders today.
“We want peace. Now is the time to intensify the pressure until Putin is also ready for peace,” the European Commission President said.
The 18th package of sanctions will include, for example, sanctions on Nord Stream 1 and 2, listing more vessels of the Russian shadow fleet, and lowering the oil price cap, von der Leyen added.
The price cap mechanism set by the G7 and the EU says that Russian crude shipments to third countries can use Western insurance and financing if cargoes are sold at or below the $60-a-barrel ceiling.
With international benchmarks down to the low $60s per barrel, and at times, lower, the price of Urals, Russia’s flagship crude, has been below the $60 per barrel price cap for weeks. As a result, cap price-compliant shipments can be made from Russia’s ports via tankers, traders, and insurers owned by Western companies.
“It will also include more sanctions on the financial sector in Russia,” von der Leyen said, referring to the 18th sanctions package.
By Michael Kern for Oilprice.com
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