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Brussels Eyes $45 Oil Cap and SWIFT Ban for Russian Banks in New Sanctions Package

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Maryna_kulakova
Maryna Kulakova
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Brussels Eyes $45 Oil Cap and SWIFT Ban for Russian Banks in New Sanctions Package
A woman walks past an office of VTB Bank, the Russia's second largest one, in the Moscow International Business Centre (Moskva City) in Moscow on October 3, 2023. (Source: Getty Images)

The European Union is weighing a sweeping new sanctions package that could see more than 20 Russian banks cut off from SWIFT, a lower price cap on Russian oil, and a formal ban on the Nord Stream gas pipelines, according to Bloomberg on May 24.

The measures, aimed at intensifying pressure on Moscow to halt its war against Ukraine, are currently being discussed by the European Commission in consultation with member states, sources familiar with the talks told Bloomberg.

A final decision on timing has not yet been made, and the proposals may shift before being formally presented. EU sanctions must receive unanimous approval from all member states.

The package also includes potential new transaction bans on around two dozen banks and roughly €2.5 billion ($2.84 billion) in additional trade restrictions, part of a broader effort to limit Russia’s revenue streams and access to critical military technologies.

One key element under consideration is a proposal to lower the Group of Seven’s price cap on Russian oil from the current $60 to around $45 per barrel. Such a move would require coordination with the United States and other G7 members. However, G7 finance ministers failed to reach consensus on the price cut during their meeting this week in Banff, Canada.

Earlier, US Senators Richard Blumenthal and Lindsey Graham have stated that they have already introduced a bill proposing new sanctions on Russia, including a 500% tariff on imported goods from countries that purchase Russian energy resources.

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