EU sanctions package could target nearly 90 more Russian banks

Nearly 90 Russian banks could be targeted under the European Union’s proposed 21st package of sanctions against Moscow, as EU ambassadors sought a compromise with Greece on July 22 to secure approval for the measures, EU diplomats told Reuters.

The proposed package includes around 215 individuals and entities, including 94 financial institutions. Nearly 90 of them are banks, potentially bringing the total number of Russian banks under EU sanctions to more than 100 — over half of Russia’s 213 internationally connected lenders.

The measures are aimed at increasing pressure on Russia’s financial system and restricting channels used by Russian companies to maintain trade and financial flows despite existing Western sanctions.

Major Russian banks were disconnected from SWIFT, the secure international financial messaging system, in 2022. However, Russian companies have continued to use smaller and regional lenders, as well as cryptocurrency networks.

A European intelligence service warned in June that Russia faced the risk of an “explosive” banking crisis and that new sanctions targeting banks could trigger an economic shock. Russian authorities have dismissed warnings of an imminent crisis.

The proposed package has remained in limbo amid divisions within the EU, as the European Commission seeks to close sanctions loopholes and increase pressure on Russia’s financial and energy revenues.

By Sabina Mammadli