EU Plans Nord Stream Ban, Lowers Russian Oil Price Cap to $45

The European Union has proposed a new sanctions package aimed at increasing pressure on Russia to end its war in Ukraine, which includes lowering the oil price cap on Russian crude from $60 to $45 per barrel and banning transactions via the Nord Stream gas pipelines. European Commission President Ursula von der Leyen emphasized that lowering the cap would restore its effectiveness, as current oil prices are close to the existing cap, and that oil exports still account for about one-third of Russia's government revenues. The sanctions also target Russian shipping, adding 77 vessels to a blacklist of over 400 to disrupt clandestine fossil fuel transport, and extend restrictions on Russian banks and exports of critical dual-use technologies. The EU seeks the support of the United States and other G7 countries, with the price cap reduction expected to be discussed at the upcoming G7 summit in Canada, though unanimity among EU member states is required for the measures to proceed. This move follows the sabotage of the Nord Stream pipelines, which are currently not operational, and aims to signal that Europe will not return to previous gas transaction norms with Russia. The sanctions package represents the EU's eighteenth set of measures against Russia since the war began and reflects ongoing efforts to tighten economic pressure on Moscow.