18. EU Cranks Up the Heat: Strangling Putin's Pockets with a Lower Oil Price Squeeze
EU nations aim to inflict economic pain on Putin by driving down oil prices
Alrighty then, one month post Federal Chancellor Merz's Ukraine sojourn, the EU Commission rolls out the announced 18th sanctions package. EU Commission Prez von der Leyen's got her sights set on a tighter cap on oil prices, Russian ghost flotillas, and the banking sector. Keep your peepers peeled for some fiery language from the Commission Prez in Brussels: "We're ramping up the pressure on Russia. Son of a gun, they only bloody understand strength."
To give you a lowdown on the EU's latest moves against Russia, the package entails additional measures against the phantom fleet nimbly dodging sanctions, as well as a reduction in the oil price cap from $60 per barrel to $45 (roughly $40). The Commission Prez attributes this reduction to evolving market conditions.
In the 'December 2022' edition of the EU, G7 nations, Australia, and the EU alike agreed on a price cap for Russian oil to sink Moscow's revenue from oil exports. The Commission's adjustment to the reduced price cap is in line with these evolving market conditions, according to von der Leyen.
Conversational with the G7 summit next week in Alberta, Canada, von der Leyen showed no doubts, expressing her unwavering confidence: "I'm positive as a cow's udder in spring that we're gonna slide this sucker home."
Moving along to the economy caper, von der Leyen announced further sanctions against 77 more ships in the Russian ghost fleet and 22 more Russian banks. She also hinted at additional export bans on equipment, metals, plastics, chemicals, and dual-use goods that could potentially be utilized in the production of drones, missiles, and other war machinery.
A bit of meandering through Lithuania and von der Leyen's address, revealed some grumbles from the Lithuanian President Gitanas Nauseda. Nauseda questioned the lack of action following sanctions threats against Russia during Merz's Ukraine kewpie doll visit. According to Nauseda, such inaction jeopardizes the credibility of the sanctions, and more importantly, the credibility of all EU efforts towards Russia and Ukraine support. He stressed that the measures in the 18th sanctions package need a firm handshake.
Sources: ntv.de, mau/AFP
- EU
- EU Commission
- EU Commission Prez
- Sanctions
- Russian ghost fleet
- Banking
The EU Commission, under the leadership of President von der Leyen, has announced a new round of sanctions against Russia, targeting both the Russian ghost fleet and the banking sector. This extension of sanctions aligns with the EU's commitment to exert pressure on Russia, as agreed upon by the G7 nations, Australia, and the EU in December 2022, to curb Moscow's revenue from oil exports. Furthermore, the EU Commission is contemplating additional export bans on industries such as metals, plastics, chemicals, and dual-use goods that could potentially be used in the production of military equipment.
This latest move by the EU Commission is set within the broader context of international politics and finance, as the EU seeks to harm Putin's financial resources, specifically through a lower oil price squeeze. The implementation of these sanctions is crucial for the EU's general-news agenda, particularly in relation to supporting Ukraine and maintaining the credibility of its actions against Russia.
