A blow to banks and metals: a new package of EU sanctions against russia

The European Union proposes to introduce a new package of sanctions against Russia. The restrictions include disconnecting about 15 russian banks from the SWIFT banking system and a number of other measures.

Bloomberg writes that the package, which has been circulated among member states, also proposes measures against more than 70 ships of the “shadow fleet” involved in the transportation of russian oil. In addition, it is proposed to introduce a phased ban on imports of russian aluminum.

The package of sanctions will allow European buyers to import russian metal under a quota system for one year before a full ban comes into effect, the sources said. According to them, the plans will require the support of all EU member states and may change before being formally proposed to members.

Calls for the EU to ban russian aluminum have been made since the invasion of Ukraine, and shipments from russia to the bloc have steadily declined as producers have sought alternative suppliers. However, some buyers and EU member states are still rejecting such measures, arguing that some key products will be difficult to replace in full.

It is not certain that the EU will agree to the package of measures, which will be the 16th in a row against russia. Budapest is increasingly resisting additional sanctions against moscow.

In recent months, pressure has increased for tougher measures against the russian metallurgical sector.

In addition, the EU has proposed to impose duties on the remaining agricultural products from russia and Belarus that are not already subject to duties, as well as on some nitrogen fertilizers.

Source: Bloomberg