EU considers new sanctions on Russia targeting banks, oil payments

The European Union is considering a fresh round of sanctions on roughly half a dozen Russian banks and energy firms as part of its efforts to pressure President Vladimir Putin to end the war in Ukraine.

The measures, which would mark the EU’s 19th sanctions package since Russia’s full-scale invasion in 2022, could also target the country’s payment and credit card systems, crypto exchanges, and impose further restrictions on its oil trade, according to sources familiar with the discussions, Caliber.Az reports per foreign media.

Officials say the bloc hopes to coordinate some of the proposed measures with the United States. A delegation of EU officials is scheduled to travel to Washington this week to meet US counterparts and explore potential joint action.

“We are prepared to increase pressure on Russia, but we need our partners in Europe to follow,” US Treasury Secretary Scott Bessent said.

The US and Europe are discussing new sanctions and secondary tariffs on Russia, hoping that a Russian economic “collapse” will bring Putin to the negotiating table with Ukraine, he added.

President Donald Trump has so far refrained from imposing direct sanctions on Russia, despite multiple self-imposed deadlines and Putin’s reluctance to negotiate an end to the war. Trump has, however, doubled tariffs on India to 50% over its continued purchase of Russian oil.

Moscow is already under heavy sanctions from both the US and EU, but has mitigated some of the impact by sourcing restricted goods from China and other third countries, as well as finding buyers for its oil and gas in India and elsewhere.

In addition to further levies on Russian oil buyers, the US has considered sanctions on Moscow’s covert oil tanker fleet and energy firms Rosneft PJSC and Lukoil PJSC as part of a broader menu of options, Bloomberg previously reported.

The EU’s proposed package would tighten sanctions on Russian shadow vessels, oil traders in third countries, and could introduce a ban on re-insuring listed tankers.

It is also examining measures to remove exemptions currently enjoyed by major Russian oil firms such as Rosneft, along with export bans on goods and chemicals used in Moscow’s military industry.

Restrictions could also extend to foreign firms, including those in China, that supply such items. Beijing has emerged as a key supplier for Russia’s military, particularly in enabling the production of drones used against Ukrainian cities.

Separately, the EU is considering deploying its “anti-circumvention tool” for the first time against Kazakhstan, which could see the country barred from importing certain machines that are still being diverted to Russia for weapons production, sources said. Officials noted that the tool requires extensive evidence and support from EU member states.

Other potential measures under discussion include visa restrictions, sanctions on ports handling shadow vessels, and limits on services such as artificial intelligence that have military applications.

EU ambassadors were briefed on the proposed package over the weekend, with a formal proposal expected in the coming days.

By Aghakazim Guliyev