EU readying new sanctions on Russia, snubbing Putin's plea on banks

The European Union is preparing a 17th round of sanctions on Russia, despite Moscow’s request to lift certain restrictions as part of a potential mini-ceasefire deal.

Discussions on the new sanctions are still in the early stages, according to multiple EU diplomats, with proposals expected to be presented by the European Commission in early summer, Caliber.Az reports, citing European media.

The sanctions are set to target key Russian sectors, with a particular focus on Russian fertiliser imports, following the EU ambassadors’ recent approval of a “negotiating mandate” for punitive tariffs. However, diplomatic caution surrounds the timing of the new measures, with one diplomat noting that developments in ongoing US-Russia-Ukraine peace talks could influence the final decision.

This diplomatic push for further sanctions comes amid a summit of 27 EU states, the UK, and Ukraine, which took place in Paris on Thursday. The summit was convened after the US and Russia reached an agreement for a mini-ceasefire, limited to the Black Sea region. Russian President Vladimir Putin, however, stated that he would only implement the ceasefire if the EU allowed one of Russia’s top banks, Rosselkhozbank, to re-enter the Belgium-based SWIFT international payments grid.

However, leading EU figures, including French President Emmanuel Macron, outgoing German Chancellor Olaf Scholz, Polish Prime Minister Donald Tusk, and UK Prime Minister Keir Starmer, firmly rejected this request. Scholz emphasized that it would make no sense to lift sanctions before peace is achieved, while Macron reiterated that EU support for anti-Russia sanctions remained unanimous.

Macron also stressed that lifting sanctions prematurely would be a “strategic mistake,” a sentiment echoed by EU Council Chairman António Costa. The EU has already taken significant actions against Russia, such as de-SWIFTing 23 Russian banks and freezing €210 billion of Russian central bank assets, alongside imposing an embargo on €140 billion worth of annual trade.

The summit also focused on strengthening military aid to Ukraine. Macron pledged an additional €2 billion in support, while EU countries began assembling €5 billion for the purchase of high-calibre artillery shells for Ukraine. 

Meanwhile, the UK and EU are exploring the creation of a European peacekeeping force to be deployed in Ukraine once the conflict ceases. However, the proposal has met resistance within the EU, with Macron noting the lack of unanimous support but emphasizing that a coalition-of-the-willing model could still make the operation viable.

Despite EU leaders’ unity on these matters, concerns loom over the potential obstruction of the 17th round of sanctions, particularly with the possibility that Hungarian Prime Minister Viktor Orbán, an ally of both Trump and Putin, might veto the move. Furthermore, EU farmers' lobbyists, concerned about the economic impact of fertiliser tariffs, could push back against the new sanctions, potentially complicating their implementation.

By Khagan Isayev