TASS reported that the EU is discussing a new package of unprecedentedly tough sanctions against Russia, including a proposal to lower the price cap on oil to only 45 USD/barrel and completely ban the Nord Stream gas pipeline system - the energy symbol connecting Russia with the EU.
The information was revealed by Bloomberg on May 24, citing close sources, showing that the EU is entering a deeper sanctions phase with the goal of "cutting off Russia's financial and technological resources" after more than 3 years since the Russia-Ukraine conflict broke out.
A highlight in the new package is the plan to lower the price ceiling that the G7 countries, the EU and Australia are applying to Russian seaborne crude oil, from $60 to $45/barrel, down nearly 25%.
Experts say that if the new price cap is implemented, oil exports - which account for more than 30% of Russia's national budget - could be seriously affected.
Along with that, the new transaction banks are expected to target about 20 Russian banks, removing them from the international payment system SWIFT.
The most shocking move in this proposal is the possibility of the EU completely banning Nord Stream, two undersea gas pipelines that were "energy fields" between Russia and Europe before 2022.
Although Nord Stream 1 has been inactive since the mysterious explosion at the end of 2022, and Nord Stream 2 has never been officially put into operation, the highly symbolic ban shows the determination to completely cut off Europe and Russian energy.
However, an official decision has not yet been made, and any sanctions would require absolute consent from the 27 EU member states - which is not easy in the context of much internal division.
Hungarian Prime Minister Viktor Orban reacted strongly to the EU's plan to completely ban Russian oil and gas.
In a TV message broadcast after an emergency energy meeting, he accused the EU of "intending to sabotage Hungarian and European families to help Ukraine".
If this plan is implemented, gas and electricity bills will increase many times. This is a cost that the people cannot afford, Mr. Orban warned, adding that the EU plan will cost Hungary up to 800 billion forints (equivalent to 2 billion euros) - exactly the same as the state budget used to subsidized electricity, water and gas prices.
Budapest continues to maintain its stance against expanding sanctions, saying that allowing Ukraine to join the EU too hastily is "dangerous to the whole bloc". Mr. Orban also called on Hungarians to vote in the popular vote on Ukraine's EU entry taking place in this country.
Tensions have increased as Ukraine, backed by the EU, has stopped the transit of Russian gas through its territory since January 1, 2025, causing Central European countries, including Hungary, to be passive in energy.
They are helping Ukraine at all costs, while Ukraine is turning its back on neighboring countries, a Hungarian official criticized in local media.
