On Friday, the European Union rolled out a robust new package of sanctions, specifically crafted to weaken Russia’s economy and impede its ability to finance the war in Ukraine. These measures target key areas, including Russian energy exports and its financial services sector.
This marks the bloc’s 19th round of restrictions, signaling a determined effort by European leaders to increase pressure on Russian President Vladimir V. Putin. It also appears to be a clear message to the White House, coming shortly after former President Trump urged European nations to cease oil purchases from Russia.
During the announcement on Friday, Ursula von der Leyen, President of the European Commission, declared that it was ‘time to turn off the tap.’ She emphasized that the sanctions are a powerful instrument of economic pressure and will remain in force until Russia engages in meaningful negotiations.
The package includes an accelerated plan to eliminate Russian liquefied natural gas (LNG) imports by early 2027, a full year ahead of schedule. New provisions also aim to compel companies in China and other countries to halt business dealings with Russia. Notably, this package introduces restrictions on cryptocurrency platforms facilitating transactions with Russia, marking a significant first.
Furthermore, the EU is expanding its blacklist to include more ships, bringing the total to 560 vessels. These ships are part of Russia’s ‘shadow fleet’ – an assortment of often aging vessels with opaque ownership, which Russia has used to bypass Western restrictions and continue its lucrative oil sales.
While this new sanctions package requires formal approval from political leaders across the 27-member bloc, an outcome anticipated as early as next month, its extensive pre-announcement negotiations suggest that a version of the proposal is highly likely to pass.
This announcement coincides with recent statements from Mr. Trump, who has consistently discussed sanctions and indicated that the United States would be willing to impose severe penalties on Russia, but only if European countries completely halt their oil imports from Russia.
Last weekend, Mr. Trump publicly stated that he is prepared to impose ‘major Sanctions on Russia’ once all NATO nations collectively agree to and begin similar actions, specifically demanding that they ‘STOP BUYING OIL FROM RUSSIA.’
Despite the European Union’s ongoing efforts to reduce reliance on Russian oil, countries like Hungary and Slovakia continue to depend significantly on Russian energy supplies. These nations have already faced considerable pressure from their European counterparts to reduce these purchases.
Prior to the war in Ukraine, EU member states sourced over 40 percent of their pipeline natural gas and almost 30 percent of their oil from Russia. However, these figures have drastically decreased, with gas imports now at approximately 10 percent and oil imports at just about 2 percent as of early this year.
Some observers in Europe interpret Mr. Trump’s recent call as a move that could intensify pressure on Hungarian Prime Minister Viktor Orban, known for his ideological alignment with the ‘Make America Great Again’ movement.
Conversely, others suggest that the former president is intentionally setting an impossibly high standard for the U.S. to join further sanctions against Russia, effectively creating an excuse for American inaction while shifting the blame to Europe.
Jacob Funk Kirkegaard, a senior fellow at the economic think tank Bruegel, viewed these developments as ‘certainly a distraction.’ He noted a prevailing understanding that ‘Trump is not going to expend U.S. political and economic resources on getting tough on Putin.’