Brussels has suggested a complete transaction ban on the two pipelines as well as lowering the oil price cap on Moscow
The European Commission has proposed a ban on the use of Nord Stream gas infrastructure and a reduction of the price cap on Russian oil in its 18th sanctions package against Moscow, EC President Ursula von der Leyen announced on Tuesday.
“No EU operator will be able to engage directly or indirectly in any transaction regarding the Nord Stream pipelines. There is no return to the past,” she stated.
Both pipelines were severely damaged in a series of underwater explosions in the Baltic Sea in September 2022. Since the sabotage, the pipelines have been out of service.
The commission also intends to lower the price cap on Russian crude oil exports from the current $60 per barrel to $45. The cap, which was introduced in December 2022 by the G7, EU, and Australia, aimed to curb Russia’s oil revenue while maintaining global supply.
The new sanctions package also proposes a ban on the import of all refined goods based on Russian crude oil and sanctions on 77 vessels that are allegedly part of Russia’s so-called ‘shadow fleet’, which Brussels claims is used to circumvent oil trade restrictions.
The commission has also suggested expanding the EU sanctions list to include additional Russian banks and implementing a “complete transaction ban” alongside existing restrictions on the use of the SWIFT financial messaging system. The restrictions would also apply to banks in third countries that “finance trade to Russia in circumvention of sanctions,” according to the EC president.
The draft sanctions package will next be put up for discussion among EU members and must be approved by all 27 EU states in order to pass. Previous rounds of sanctions faced resistance from countries such as Hungary and Slovakia, which argue that the restrictions harm the EU economy.
Russia has dismissed the Western sanctions as illegitimate, saying pressure tactics are counterproductive. President Vladimir Putin has said the removal of sanctions is among the conditions for a settlement of the Ukraine conflict.
