The European Union is considering disconnecting more than 20 Russian banks from the SWIFT international payment system, as well as lowering the price ceiling for Russian oil and imposing a ban on the Nord Stream gas pipelines as part of a new package of sanctions.

Source: European Pravda; Bloomberg sources

Details:The news agency sources say that the European Commission is consulting with EU member states on plans to disconnect more than 20 Russian banks from the SWIFT international payment system, lower the price ceiling for Russian oil, and impose a ban on the Nord Stream gas pipelines as part of the 18th package of sanctions against Russia.

The EU is considering an additional ban on financial transactions for about two dozen banks and new trade restrictions worth about €2.5 billion in an effort to reduce Russia's revenues further and restrict its access to technologies needed for weapons production.

The European Commission is also planning to propose reducing the G7 price ceiling on Russian oil to around US$45 as part of the sanctions package under discussion.

Currently, this limit is US$60 and it prohibits service providers from the G7 countries from transporting and servicing oil sales if the price exceeds this limit. The US will need support to reduce the price.

Bloomberg reports that the key point in the new package is the EU's intention to impose sanctions against the Nord Stream gas pipelines. The sanctions will further confirm Europe's position that it does not want to resume supplies of Russian pipeline gas.

In addition, the EU wants to expand sanctions against the shadow fleet of Russian tankers and is considering further restrictions against banks that facilitate Russia's war and the Russian Direct Investment Fund.

The EU also wants to include provisions to protect European companies from arbitration claims under bilateral investment agreements in the new sanctions package, the 18th since Russia's full-scale invasion of Ukraine in 2022.

Background:

• On 23 May, it became known that the European Commission would hold closed consultations with EU member states on further sanctions against Russia.
• US President Donald Trump has previously stated that he wants to achieve a reduction in global oil prices, which will help end Russia's full-scale invasion of Ukraine.
• The UK has called on its G7 partners to agree to lower the price ceiling for Russian oil, saying that this step is necessary to increase pressure on Kremlin leader Vladimir Putin to end Russia's war against Ukraine.

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