EU proposes fresh sanctions on Russia's oil, banks, Nord Stream and 'shadow fleet'
The European Union has formally proposed a fresh round of sanctions against Russia to pressure the Kremlin into accepting a 30-day unconditional ceasefire in Ukraine, a step that Western allies consider an indispensable prelude to serious peace negotiations.
If approved by member states, it would mark the 18th package of sanctions since February 2022, the largest regime ever imposed by the bloc.
The latest proposal, unveiled on Tuesday by European Commission President Ursula von der Leyen and High Representative Kaja Kallas, blacklists an additional 22 Russian banks and extends the ban on transactions to entities based outside the country that contribute to the circumvention of sanctions. The Russian Direct Investment Fund, a sovereign wealth fund with an estimated capital of $10 billion (€8.75 billion), is targeted.
"Russia continues to bring death and destruction to Ukraine," von der Leyen said. "Russia's goal is not peace, it is to impose the rule of might."
The crackdown on the "shadow fleet" continues with the designation of 77 vessels. So far, Brussels has gone after almost 350 tankers from the old-age, poorly kept fleet, denying them access to EU ports and EU services.
The plan also features a ban on the direct or indirect use of the Nord Stream pipelines that connect Russia and Germany. The underwater pipelines are today non-operational, and Berlin has ruled out the prospect of restarting gas transit after the war ends.
"There is no return to the past," von der Leyen said.
The most notable element of the proposed package is a downward revision of the price cap on Russia's seaborne oil, which was established at the G7 level in December 2022.
The cap was set at $60 per barrel of crude and has remained unchanged since then, despite ample fluctuations in Russia's trade and evidence of circumvention. The Nordics and the Baltics have long called for a revision to reflect market dynamics.
On Tuesday, von der Leyen pitched a new cap of $45 per barrel, in addition to a prohibition to importing refined products that are made with Russian crude oil and traded under a different label. These mostly come from India and Turkey.
In theory, the EU could pass new legislation to bring down the level of the cap on its own in an attempt to further squeeze Moscow's profits. However, doing so without the participation of the United States could create a cacophony and weaken the initiative, which is supposed to have a worldwide effect.
Until now, Donald Trump has refused to apply new sanctions against Russia, even if his rhetoric towards Vladimir Putin had hardened over the slow pace of negotiations and the continued barrage of attacks against Ukrainian cities. Trump's position has driven a wedge across the Western front, with the EU, the UK and Canada moving ahead with fresh restrictions while Washington takes a step back.
The tensions in the alliance will come to the fore on Sunday during a G7 summit in Canada, where the revision of the price cap will be high on the agenda.
Asked if the EU would go it alone, von der Leyen suggested it would not, at least not for the time being.
"My assumption is that we do that (the revision of the price cap) together as G7," she said. "We started as G7, it was successful as a measure from the G7, and I want to continue this measure as G7."
Meanwhile, EU officials and diplomats insist on piling extra pressure on the Kremlin regardless of the course of action that the White House chooses to take. Trump's direction, though, could influence deliberations in Brussels, as unanimity among the 27 member states is required to approve the 18th package.
Hungary and Slovakia have, in recent months, ramped up their criticism against sanctions, arguing they cause more damage to the bloc's economy than to Russia's.
Earlier this year, Hungary threatened to veto the renewal of all sectoral sanctions, an against-the-clock experience that prompted officials to start working on legal shortcuts, particularly with a view to protecting the estimated €210 billion in Russia's frozen assets.
Last week, Slovakia's parliament narrowly passed a resolution urging the government to oppose further trade restrictions against Russia.
"If there is a sanction that would harm us, I will never vote for it," Slovak Prime Minister Robert Fico said after the vote in parliament. "I am interested in being a constructive player in the European Union, but not at the expense of Slovakia."
Still, for all their antagonistic talk, neither Hungary nor Slovakia has gone as far as completely preventing the adoption of a new package of sanctions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
US threatens allies: we will retaliate if you attend UN Palestine summit
Donald Trump's administration has threatened allies with consequences if they attend an upcoming UN conference on a possible two-state solution between Israel and Palestine. The diplomatic demarche, sent on Tuesday, says countries that take 'anti-Israel actions' following the conference will be viewed as acting in opposition to US foreign policy interests and could face diplomatic consequences from Washington, Reuters reported. France and Saudi Arabia are co-hosting the gathering next week in New York that aims to lay out the parameters for a roadmap to a Palestinian state, while ensuring Israel's security. 'We are urging governments not to participate in the conference, which we view as counterproductive to ongoing, lifesaving efforts to end the war in Gaza and free hostages,' read the cable. Emmanuel Macron has suggested France could recognise a Palestinian state in Israeli-occupied territory at the conference. French officials say they have been working to avoid a clash with the US, Israel's staunchest major ally. 'The United States opposes any steps that would unilaterally recognise a conjectural Palestinian state, which adds significant legal and political obstacles to the eventual resolution of the conflict and could coerce Israel during a war, thereby supporting its enemies,' the cable read. This week Britain and Canada, also G7 allies of the United States, were joined by other countries in placing sanctions on two Israeli far-Right government ministers to pressure prime minister Benjamin Netanyahu to bring the Gaza war to an end. 'The United States opposes the implied support of the conference for potential actions including boycotts and sanctions on Israel as well as other punitive measures,' the cable read. Israel has repeatedly criticised the conference, saying it rewards Islamist Hamas militants for the Oct. 7, 2023 attack on Israel that triggered the Gaza war, and it has lobbied France against recognising a Palestinian state. The US State Department and the French foreign ministry did not immediately respond to requests for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
28 minutes ago
- Yahoo
Ukraine war latest: Ukraine strikes targets in Russia, including gunpowder plant
Key developments on June 11: Ukrainian drones strike targets in Russia, including gunpowder plant, General Staff says Zelensky urges 'stronger' EU sanctions on Russia, lower oil price cap Ukraine repatriates bodies of 1,212 fallen soldiers Ukraine's SBU releases fresh video of Operation Spiderweb, teases 'new surprises' NATO summit statement omits Ukraine's entry bid, $40 billion pledge, Bloomberg reports Ukrainian drones struck multiple military targets in Russia, including the Tambov Gunpowder Plant, overnight on June 11, the General Staff of Ukraine's Armed Forces reported. The plant, one of Russia's main manufacturers of gunpowder and explosives for small arms, artillery, and rocket systems, caught fire following the drone strike, according to the General Staff. Local residents reported hearing explosions and shared videos showing a large blaze near the facility, according to the Russian independent media outlet Astra. The General Staff described the attack as part of a broader operation to degrade Russia's ability to produce explosive materials and ammunition used in the full-scale war against Ukraine. The Tambov facility has been targeted several times since November 2023, and U.S. sanctions were imposed on it that same year. Tambov Oblast, located southeast of Moscow, lies hundreds of kilometers from Ukraine and shares no direct border with it. Russian state news agency TASS confirmed a drone attack but did not mention the strike on the powder plant. Tambov Oblast Governor Maxim Egorov said that emergency services had extinguished the fire and that there were no casualties, though he did not specify the location of the fire. In addition to the strike on Tambov, Ukrainian drones hit the ammunition depot of Russia's 106th Airborne Division in Kursk Oblast and the depot at Buturlinovka airfield in Voronezh Oblast, the General Staff said. The extent of the damage is still being assessed, the General Staff said. "The Defense Forces continue to take all measures to undermine the military and economic potential of the Russian occupiers and force Russia to stop its armed aggression against Ukraine," the statement reads. Ukraine has ramped up long-range drone strikes in recent weeks, targeting Russian air bases and arms production facilities in an effort to disrupt Moscow's war machine ahead of an anticipated Russian summer offensive. Read also: As Russia inches closer to Dnipropetrovsk Oblast, new Ukrainian region might soon be at war President Volodymyr Zelensky on June 11 called on the European Union to impose tougher sanctions against Russia, arguing that stronger financial pressure is necessary to curb Moscow's war effort. Speaking at the Ukraine-Southeast Europe Summit in Odesa, Zelensky said the upcoming 18th EU sanctions package "could be stronger," especially in targeting Russian oil tankers and the financial sector. He urged the EU to further reduce the price cap on Russian oil exports. "A ceiling of $45 per barrel of oil is better than $60, that's clear, that's true. But real peace will come with a ceiling of $30," he said. "That's the level that will really change the mindset in Moscow." After the 17th package of sanctions against Russia took effect on May 20, Ukraine's allies announced the following day that another round of restrictions was already in the works. European Commission President Ursula von der Leyen announced on June 10 that the EU is considering lowering the oil price cap from $60 to $45 per barrel — a measure that will be discussed at the upcoming G7 summit in Canada on June 15–17. The Kremlin's budget is increasingly strained by soaring military expenditures, with Russia's Finance Ministry relying heavily on energy revenues to fund the war against Ukraine. Join our community Support independent journalism in Ukraine. Join us in this fight. Support Us The push for tighter sanctions comes as Russia continues to reject ceasefire proposals and presses forward with military operations. Zelensky warned that Odesa remains one of Russia's "main targets," with plans to push beyond it toward the borders with Romania and Moldova. "Russia wants to destroy it, as it has done with countless cities and villages in the occupied territories," he said. "Russian military plans point to this region — Odesa — and then to the border with Moldova and Romania." Odesa is a major port city in southern Ukraine, located on the northwestern coast of the Black Sea. The president warned of possible destabilization efforts in the broader region, comparing the Kremlin's strategy to its previous interference in the Balkans. "We saw this before in the Balkans, where Russia intensified interethnic friction, carried out sabotage, and even attempted coups," Zelensky said. The Odesa summit was attended by several southeastern European leaders, including Serbian President Aleksandar Vucic and Romania's newly elected President Nicusor Dan. Vucic's trip marked his first official visit to Ukraine since the start of Russia's full-scale invasion. Read also: Ukraine bracing for 'painful' reduction in US military aid after Hegseth announces cuts Ukraine has brought back the bodies of 1,212 fallen service members, the Ukrainian Coordination Headquarters for the Treatment of Prisoners of War (POW) said on June 11. The announcement follows Russian-Ukrainian Istanbul talks on June 2, which focused on exchanges of POWs and fallen soldiers. The repatriation was carried out through a coordinated effort involving the Security Service of Ukraine (SBU), the Armed Forces, the Interior Ministry, the Ombudsman's Office, the State Emergency Service, and other national security and defense institutions. The International Committee of the Red Cross also supported the operation. The remains of soldiers were returned from multiple front-line regions, including Kharkiv, Donetsk, Luhansk, Zaporizhzhia, Kherson, and Sumy oblasts. Officials emphasized that investigative and forensic teams from the Interior Ministry and the Health Ministry are working to identify the bodies in the shortest possible time. Vladimir Medinsky, aide to Russian President Vladimir Putin, claimed Russia transferred the bodies of 1,212 Ukrainian soldiers in accordance with the agreements in Istanbul, while Ukraine released the remains of 27 Russian service members. The Ukrainian side did not disclose how many Russian bodies were handed over in return. At the Istanbul meeting on June 2, Russian and Ukrainian delegations agreed on a new exchange of POWs but failed to reach a ceasefire agreement. The Turkey-hosted talks were the second round since mid-May and resulted in an agreement to exchange severely wounded and young prisoners, with President Volodymyr Zelensky saying up to 1,200 individuals could be returned on each side. Russia also pledged to transfer up to 6,000 bodies of Ukrainian soldiers. Following the Istanbul talks, Ukraine and Russia have already conducted two prisoner exchanges on June 9 and 10. While exact figures were not immediately disclosed, Ukraine confirmed the return of severely wounded and chronically ill prisoners, including those captured during the 2022 siege of Mariupol and held for more than three years. In Istanbul, Ukraine also submitted a peace proposal that called for a full ceasefire, an "all-for-all" POW exchange, the return of abducted children, and the use of frozen Russian assets to rebuild Ukraine. Russia has yet to formally respond. Read also: 'Ukrainians have been stripped of illusion of control' — Filmmaker Kateryna Gornostai on Russia's war, cinema and reclaiming the narrative The Security Service of Ukraine (SBU) released on June 11 a new video detailing the sequence of its mass drone strike against Russia's strategic aviation earlier this month. The Operation Spiderweb, carried out on June 1, involved 117 drones that were hidden in trucks across Russia and deployed against four air bases, some thousands of kilometers from the Ukrainian border. The strike deep in the rear damaged 41 aircraft, including Tu-95, Tu-22M3, and Tu-160 bombers, rare A-50 spy planes, and An-12 and Il-78 transport aircraft, causing damage of over $7 billion, the SBU said. Trucks, seen in the footage driving in an undisclosed location, first transported first-person-view (FPV) drones and wooden cabins to Russia, the SBU said. Already on Russian territory, the vehicles were loaded with cabins, which, in turn, carried the drones. 0:00 / 1× The preparations were taking place in the Russian city of Chelyabinsk, not far from a Federal Security Service (FSB) office, according to the SBU. The loaded trucks then drove to multiple locations in the cities of Ivanovo, Ryazan, and in the Murmansk, Irkutsk, and Amur oblasts. The cabins opened remotely at the time of the attack, allowing the drones to strike Russian planes at the Belaya, Olenya, Dyagilevo, and Ivanovo air bases. The operation was also meant to strike at the Russian air base in Ukrainka in Amur Oblast, but this part of the attack failed. In the strike, Ukraine deployed drones specially designed by SBU specialists for attacks deep in the rear. Their unique features allowed them to be remotely controlled in real time thousands of kilometers behind the border, an SBU source told the Kyiv Independent. The drones' design also helped them "bypass Russian defenses and effectively strike the strategic aviation," the source said. SBU chief Vasyl Maliuk, who personally oversaw the operation, stressed that Ukrainian drones targeted "absolutely legitimate targets – military airfields and aircraft that attack our peaceful cities." "The SBU is hitting and will hit (Russia) where it considers itself unreachable!" Maliuk said in a statement. "We are working on new surprises, no less painful than the Operation Spiderweb." The attack was lauded by Ukrainian leaders and Western partners, with NATO Admiral Pierre Vandier calling it a reinvention of "the Trojan Horse" method with "technical and industrial creativity." Various satellite imagery released after the attack showed around a dozen destroyed planes. NATO estimates that between 10 and 13 Russian planes were completely destroyed, and more were damaged. In turn, President Volodymyr Zelensky claimed that roughly half of the 41 targeted planes have been damaged beyond repair. Russia acknowledged damage to its aircraft but claimed all of them will be "restored." Read also: America's weak strongman A one-page draft of a joint declaration for the upcoming NATO summit omits Ukraine's membership aspirations and last year's pledge of over $40 billion in support, Bloomberg reported on June 11 after reviewing the draft. This news signals that, for the first time since 2022, Russia's war against Ukraine will not be the chief focus of the annual NATO meeting, which is taking place on June 24-25 in The Hague. The unusually brief document recognizes Russia as a threat to NATO but not as an aggressor in Ukraine. It also does not mention China, Bloomberg reported. The communique of the 2024 summit in Washington named Beijing as a "decisive enabler" of Russia's war against Ukraine. Last year's gathering also included a declaration that Ukraine's path to NATO is "irreversible" and promised more than $40 billion in additional military aid. This year, the document will solely focus on defense spending, as U.S. President Donald Trump pushes NATO partners to hike the military expenditure benchmark from 2% to 5% of GDP. The final version of the statement can still change, Bloomberg reported. The brevity of the communique and the summit itself, as well as the decreased focus on Ukraine, stems from the effort to avoid conflict between Trump and European allies. In a sharp break from former U.S. President Joe Biden, the Trump administration has not approved any new military aid packages to Ukraine and signaled its intent to reduce assistance for Kyiv in the next year's budget. The U.S. president initially vowed to broker a peace deal between Kyiv and Moscow but became increasingly less engaged in the process as the negotiations stalled and Russia only intensified its attacks against Ukraine. According to Bloomberg, NATO allies will pledge to allocate at least 3.5% of GDP to defense needs and 1.5% to protecting infrastructure and civil preparedness by 2032. Member states will also consider counting their contributions to Ukraine as part of the new defense spending targets, the news outlet reported. The summit was preceded by rumors that President Volodymyr Zelensky would not be invited to participate for the first time due to U.S. opposition. Later, the speculations were dispelled after the Dutch media reported that NATO Secretary General Mark Rutte had invited the Ukrainian leader to attend. Ukraine War Latest is put together by the Kyiv Independent news desk team, who keep you informed 24 hours a day, seven days a week. If you value our work and want to ensure we have the resources to continue, join the Kyiv Independent community. We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
Yahoo
28 minutes ago
- Yahoo
Zelensky accuses Russia of broader territorial aims at Odessa summit
Ukrainian President Volodymyr Zelensky on Wednesday accused Russia of pursuing wider territorial ambitions in Europe than it publicly admits. "Russian war plans point to this region – Odessa - and then toward the borders with Moldova and Romania," Zelensky said at the Ukraine-Southeast Europe Summit in the Black Sea port city. He said that Moscow seeks to sow chaos across the region to weaken Europe as a whole. Shortly after Russia launched its full-scale invasion of Ukraine in 2022, Russian General Rustam Minnekayev declared that controlling southern Ukraine and securing a land corridor to the breakaway Moldovan region of Transnistria were among Moscow's war aims. The Kremlin has never formally confirmed those objectives. Zelensky warns of domino effect Zelensky said Russia's goals extend well beyond Ukraine. The Kremlin, he claimed, has stirred ethnic tensions in the Balkans, meddled in elections in Romania, and is attempting to regain influence over former Soviet republics such as Moldova. He warned that if pro-Russian forces win Moldova's parliamentary elections in September, it could embolden Moscow to deepen its interference in other European countries. The summit in Odessa was held to coordinate regional support for Ukraine and address wider security concerns. Zelensky renewed his calls for stronger air defences and political backing, including support for Ukraine's bid to join the European Union. He also posted a video on Telegram showing himself and several visiting leaders laying flowers for fallen Ukrainian soldiers.
