EU weighs disconnecting over 20 Russian banks from SWIFT in new sanctions push

The EU is considering disconnecting more than 20 Russian banks from the international SWIFT payment system as part of a new sanctions package against Russia, Bloomberg reported, citing sources.

Brussels also plans to propose to the G7 countries a reduction in the oil price cap from $60 to around $45, although this would require support from the United States. President Donald Trump has so far refrained from imposing new sanctions against Russia, though he has threatened to do so several times. The G7 countries have not ruled out lowering the existing price cap.

The European Union may also introduce new trade restrictions worth about €2.5 billion ($2.84 billion).

Bloomberg noted that Brussels' plans to impose sanctions on the Nord Stream gas pipelines have already gained support from Germany. The agency reported earlier this week that the European Commission is close to including the unused Nord Stream 2 pipeline in the new sanctions package. The Commission believes that such measures would “add weight” to the EU's position of not wanting to purchase Russian gas, and also protect Berlin from “any potential pressure” from Washington and Moscow.

According to Reuters, Russia and the US have discussed the possibility of American investors acquiring stakes in the Nord Stream project or in a pipeline running through Ukrainian territory. Former Nord Stream AG executive Matthias Warnig is reportedly involved in efforts to restart the pipeline, the Financial Times wrote.

In the fall of 2022, explosions occurred on the Nord Stream and Nord Stream 2 pipelines. At the time, the first pipeline had been shut down for maintenance, while the second had not yet been put into operation. As a result, three of the four pipeline strings were damaged.

The European Commission is currently discussing restrictive measures with EU member states, according to sources. It remains unclear when the sanctions will be adopted, as EU sanctions require unanimous approval from all member states.

On May 20, EU foreign policy chief Kaja Kallas announced that the bloc had agreed on a 17th package of sanctions against Russia. This round targeted 75 individuals and entities, including Sergey Kogogin, CEO of KAMAZ, oil company Surgutneftegaz, insurance company VSK, and major gold producer Atlas Mining (formerly Petropavlovsk), among others. It also sanctioned 189 vessels belonging to Russia’s shadow fleet. Estonian Foreign Minister Margus Tsahkna stated that the EU has already begun work on an 18th sanctions package.

Responding to threats of new sanctions in the event Russia refuses to agree to a ceasefire, the Kremlin said Moscow cannot be addressed with “the language of ultimatums.” President Vladimir Putin urged people “not to be afraid” of sanctions and described those who impose them as “fools” for harming themselves. “It seems obvious that this or that action wouldn't be taken because it hurts them. But they go ahead and do it — fools. Oh, pardon me,” Putin said.