The European Commission is consulting member states on plans to remove more than 20 banks in Russia from the SWIFT system, lower the ceiling for Russian oil prices and completely ban Nord Stream gas pipelines as part of the latest sanctions package against Russia.
In addition, the EU is also considering an additional ban on transactions with about 20 banks, along with new trade restrictions worth about 2.5 billion euros (equivalent to 2.84 billion USD), to further tighten Russia's revenue and access to defense technology.
As part of the ongoing sanctions package, the EU enforcement agency is also planning to propose lowering the G7-imposed Russian oil price cap to around $45 a barrel, according to sources. The G7 is setting the price cap on Russian oil at $60.
Notably, the EU's plan to sanction the Nord Stream pipeline has received support from Germany. German Chancellor Friedrich Merz affirmed his support for the European Commission's proposal to "start implementing European measures targeting the Nord Stream 2 pipeline".
In other developments, the EU is considering expanding sanctions on Russia's "shadow fleet" and financial institutions accused of supporting Russia's efforts in the conflict in Ukraine, including Russia's Foreign Direct Investment Fund.
The EU also wants to include additional provisions to protect European businesses from the risk of being sued under bilateral investment agreements in the 18th package of sanctions since the Russia-Ukraine conflict broke out.
The timing of the sanctions has not yet been decided and the content of the package may change before it is officially proposed and approved. EU sanctions require absolute consensus from all member states.
