EU readies toughest sanctions yet for Russia, targeting banks and metals
The European Union is preparing another package of sanctions against Russia. It is expected that more banks will be cut off from the SWIFT system. Additionally, there is discussion about targeting another 70 ships from the shadow fleet and introducing a ban on the import of Russian aluminum, according to Bloomberg.
February 24th will mark three years since Russia commenced its full-scale war in Ukraine. Even before this anniversary, Brussels plans to impose additional sanctions on the regime in Moscow. The package anticipates that more banks will be removed from the SWIFT system, and there are talks of introducing a ban on Russian aluminum imports.
SWIFT is a key international payment system crucial to the global financial world. There is no alternative system that facilitates international transfers on such a scale, making it foundational to the global economy.
As Bloomberg reports, member states imported approximately 353,000 short tons of unprocessed aluminum from Russia over 11 months last year. Not all countries agree with this measure—some have previously argued that replacing certain Russian products in the market poses challenges. While the proposals do not include a ban on liquefied natural gas (LNG) imports, the document may feature a clause regarding its gradual phase-out.
This would be the 16th package against Russia, but there is no certainty that it will be agreed upon, particularly due to opposition from Hungary. Budapest recently blocked the routine six-month renewal of the sanctions system.
Bloomberg highlights that there has been increasing pressure in recent months to take a tougher stance on the metallurgical sector. In 2024, the United Kingdom and the United States imposed a ban on trading Russian metals on the London Metal Exchange. Initially, this caused sharp fluctuations in exchange prices and accelerated changes in global trade flows.
Targeting oil transfers
The EU's next proposal aims to increase restrictions on Russian planes and those controlled by Russia. Additionally, there is discussion of banning transactions with an extensive list of ports and airports used for the transfer of weapons and parts for their production. This proposal includes exemptions for transfers related to energy and emergency situations, according to the report.
There is also discussion about imposing stricter restrictions on software, equipment, and technology used in the defense industry. The sanctions could affect, among others, Chinese and Turkish companies that help Moscow circumvent these restrictions.
