The European Union just unveiled another round of sanctions this Friday, targeting Russia’s economy to complicate its ability to finance the war in Ukraine. These measures aim to restrict Russia’s energy trade and penalize various financial service firms.
This new package, the 19th from the bloc, is designed to intensify pressure on Russian President Vladimir Putin. It also subtly signals their stance to the White House, especially after former President Trump’s recent calls for European nations to cease Russian oil imports.
“It’s time to turn off the tap,” declared Ursula von der Leyen, President of the European Commission, during her announcement. She emphasized that “Our sanctions are an effective tool of economic pressure, and we will keep using them until Russia comes to the negotiating table.”
A key part of the package is the accelerated plan to stop purchasing Russian liquefied natural gas (LNG) by early 2027, a full year ahead of schedule. Additionally, it contains measures to compel companies, particularly those from China, to cease trade with Russia. Notably, for the first time, the sanctions will extend to cryptocurrency platforms facilitating transactions with Russia.
Furthermore, the EU plans to expand its blacklist to include more Russian ships. This would bring the total to 560 vessels, part of Russia’s “shadow fleet” – a collection of often-aging ships with obscure ownership, used to bypass Western restrictions and maintain profitable oil exports.
This latest sanctions package still requires approval from political leaders across the 27 member nations, a process that could conclude as early as next month. Given the extensive negotiations that preceded its announcement, it’s highly probable that some form of this proposal will eventually be enacted.
The timing of this announcement is significant, coinciding with Mr. Trump’s frequent discussions about sanctions. He has consistently stated that the United States is ready to join a robust effort to impose severe penalties on Russia, but only if European nations completely halt their oil purchases from Russia.
Last weekend, Mr. Trump publicly declared, “I am ready to do major Sanctions on Russia when all NATO Nations have agreed, and started, to do the same thing, and when all NATO Nations STOP BUYING OIL FROM RUSSIA.”
Despite the European Union’s ongoing efforts to reduce Russian oil imports, both Hungary and Slovakia continue to rely heavily on Russian energy supplies. These two nations have already faced significant pressure from their European counterparts to diminish these purchases.
Prior to the war in Ukraine, EU member states sourced over 40% of their pipeline natural gas and nearly 30% of their oil from Russia. However, these figures have drastically decreased, with gas imports now at around 10% and oil imports at approximately 2% as of early this year.
Some European observers believe Mr. Trump’s recent statements could intensify pressure on Hungarian Prime Minister Viktor Orban, known for his ideological alignment with the “Make America Great Again” movement.
Conversely, others interpret this as a strategic move by the former president to establish a difficult benchmark for future Russian sanctions, potentially enabling the United States to delay action while shifting blame to Europe.
Jacob Funk Kirkegaard, a senior fellow at the economic think tank Bruegel, dismissed the move as a “distraction.” He added, “The reality is there is a clear acceptance of the fact that Trump is not going to expend U.S. political and economic resources on getting tough on Putin.”