The EU has proposed a new package of sanctions against Russia, aimed primarily at its banks, cryptocurrency networks, and drone production in response to the ongoing war in Ukraine. This 21st package targets 170 individuals and entities, including close to 90 banks, which would raise the total number of Russian banks under EU sanctions to over 100, or more than half of the country’s internationally connected lenders. These banks will face asset freezes and bans on travel and transactions. The proposal will be presented to EU ambassadors for discussion, requiring unanimous approval to be enacted.
Existing Western sanctions already restrict Russia’s banking system heavily. Many major banks were disconnected from the SWIFT payment system in 2022. Nevertheless, Russian companies have turned to smaller lenders to evade these sanctions. The goal of the new sanctions is to significantly harm Russia’s financial sector and push it toward negotiating peace with Ukraine.
As Russia’s economic growth has sharply slowed, warnings of a potential banking crisis have surfaced, though the central bank claims no crisis is present. The proposed sanctions package includes transaction bans on 35 banks, including some outside Russia, and 11 cryptocurrency platforms that aid in circumventing sanctions. EU leaders indicated plans for even stricter crypto measures in the future.
Additionally, the EU wants to freeze the oil price cap to prevent Moscow from gaining increased revenue amidst geopolitical tensions. Other measures include tighter restrictions on Russian liquefied natural gas, listings of vessels associated with sanctioned activities, and new import restrictions on fish and high-performance metal alloys vital for defense and aerospace sectors.
With information from Reuters
