Price ceiling and “shadow fleet”: European Commission presents 18th package of sanctions against Russia

The European Commission has presented the 18th package of sanctions against Russia, which proposes to expand the list of the “shadow fleet” and lower the ceiling for oil prices.

This became known on Tuesday, June 10, writes ”Radio Svoboda”.

The head of the European Commission, Ursula von der Leyen, said that it is proposed to introduce a ban on transactions for Nord Stream 1 and Nord Stream 2.

“This means that no EU operator will be able to directly or indirectly participate in any transactions related to the Nord Stream pipelines. There is no going back to the past,” said Ursula von der Leyen.

Another restriction in the energy sector is the reduction of the ceiling for oil prices from $60 per barrel to $45.

According to Von der Leyen, oil exports still account for a third of the Russian government’s revenues.

“We need to reduce this source of income. The oil price cap is a G7 coalition measure, so we will discuss how to act together at the G7 summit in Canada at the end of this week or early next week,” she stressed.

The European Commission also proposes to add another 77 vessels to the blacklist of the Russian “shadow fleet” that are used to transport oil in circumvention of the bans. There is also a proposal to ban the import of processed products based on Russian crude oil.

In particular, the European Commission wants to expand the ban on the use of the SWIFT system to a complete ban on transactions, and apply it to 22 more Russian banks. The restriction will also apply to operators in third countries that finance trade with Russia in circumvention of the sanctions.

In addition, the EU may introduce export bans worth more than 2.5 billion euros. They will concern goods and technologies, including metals, plastics, chemicals, raw materials, dual-use goods and technologies.

“They are used to produce drones, missiles and other weapons systems. We want to make sure that Russia does not find ways to modernize its weapons using European technology,” von der Leyen stressed.

22 Russian and foreign companies that directly or indirectly support the Russian military-industrial complex may also be subject to sanctions.

“We reiterate our call for a full, unconditional ceasefire for at least 30 days. This pause in hostilities can be a vital step towards reducing the suffering of civilians and creating space for meaningful negotiations for a real peace,” the European Commission President concluded.

It should be noted that the EU member states must unanimously agree on the sanctions package. They must be formally approved by the EU Council at the level of foreign ministers, its next meeting will be held on June 23.

Read also: Switzerland has imposed sanctions against 189 Russian vessels.