NextFin news, BRUSSELS, Monday — The European Union is preparing its 19th sanctions package against Russia since the full-scale invasion of Ukraine in 2022, focusing on Russian banks, payment and credit card systems, cryptocurrency exchanges, and the country's oil trade, according to reports from Bloomberg and confirmed by EU officials.
The new measures aim to further restrict Russia's financial capabilities and energy exports. The EU delegation plans to travel to Washington this week to coordinate these sanctions with the United States, which has expressed readiness to intensify pressure on Russia, as stated by U.S. Treasury Secretary Scott Bessent in an NBC interview.
The sanctions package may include restrictions on Russian payment and credit card systems, limitations on crypto exchanges, and additional constraints on oil trading, including prohibitions on ship insurance and reinsurance, as well as restrictions on oil traders in third countries. These steps are intended to curb Moscow's ability to finance its military operations in Ukraine.
Besides financial and energy sector sanctions, the EU is also considering export bans on goods and chemicals used in Russia's military industry, potentially affecting foreign companies, including Chinese suppliers. China has become a key provider of components for drones used by Russia in attacks on Ukrainian cities.
Additionally, the EU is evaluating the use of an 'anti-circumvention instrument' against Kazakhstan, alleging that some goods imported by Kazakhstan are rerouted to Russia for weapons production. However, this measure requires substantial evidence and unanimous approval from all EU member states.
The final version of the sanctions package is expected to be presented officially in the coming days, with possible inclusion of visa restrictions, port limitations for vessels involved in the 'shadow fleet,' and sanctions on military-related services, including those involving artificial intelligence.
Since the start of the conflict, the EU has implemented 18 sanctions packages that have significantly reduced imports from Russia. The most recent 18th package lowered the price cap on Russian oil from $60 to $47.60 per barrel, effective from September 3.
These developments come amid ongoing efforts by the EU and the U.S. to increase economic pressure on Russia to encourage negotiations and an end to the war in Ukraine.
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