EU Proposes Cutting Russian Oil Price Cap to $45, Ban Nord Stream Pipelines

The European Union is preparing its eighteenth sanctions package targeting Russia, proposing to reduce the existing G7 oil price cap on Russian seaborne crude from $60 to $45 per barrel in response to falling oil prices and to further restrict Russia's revenue from fossil fuels. This move, advocated by European Commission President Ursula von der Leyen, also includes measures to ban the use of the Nord Stream gas pipeline infrastructure and to target the so-called 'shadow fleet' of tankers that facilitate oil exports above the price cap, including sanctioning captains operating these vessels. The EU aims to tighten financial restrictions by proposing sanctions against 22 banks and expanding the list of sanctioned shadow fleet vessels from 400 to about 800. The proposal requires unanimous approval from all EU member states and support from the United States, with hopes to reach agreement at the upcoming G7 summit in Canada. India, Brazil, and Mexico have been invited to participate in discussions, reflecting the global implications of the sanctions. EU officials emphasize that strength and unified economic pressure are necessary to compel Russia to cease its war efforts in Ukraine.