EU to intensify sanctions on Russian banks and metals
The European Union is preparing another package of sanctions against Russia. It is likely that more banks will be cut off from the SWIFT system. Additionally, there is discussion of targeting another 70 ships from the shadow fleet and introducing a ban on the import of Russian aluminum, Bloomberg reports.
February 24 will mark two 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 cut off from the SWIFT system. Furthermore, there is discussion of introducing a ban on Russian aluminum imports.
SWIFT is a key international payment system for the global financial world. There is no alternative system that allows international transfers on such a scale. The global economy largely relies on it.
According to Bloomberg, member states imported approximately 320,000 tonnes of unprocessed aluminum from Russia over 11 months last year. Not all countries will agree with this measure, as some have previously argued that replacing certain Russian products in the market is difficult. The proposals do not include a ban on imports of liquefied natural gas (LNG), but 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—especially from Hungary. Budapest has recently blocked the routine six-month renewal of the sanctions system.
Bloomberg emphasizes that there has been increasing pressure in recent months to toughen the stance on the metallurgical sector. In 2024, the United Kingdom and the USA imposed a ban on trading Russian metals on the London Metal Exchange, which initially caused sharp fluctuations in exchange prices and accelerated changes in the order of global trade flows.
Targeting oil transfers
The EU's next proposal is 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 of imposing stricter controls on software, equipment, and technology used in the defense industry. The sanctions could affect, among others, Chinese and Turkish companies helping Moscow circumvent the restrictions.
