EU plans to cut off 15 more Russian banks from SWIFT and ban aluminium - Bloomberg
Photo: EU sanctions will be extended to Russian banks (Getty Images)
The European Union is preparing a broad sanctions package ahead of the third anniversary of Russia's invasion of Ukraine. The 16th package will target banks, aluminum, and shadow fleet vessels, Bloomberg reports.
According to sources, the package proposes sanctions that will disconnect around 15 banks from the SWIFT system, as well as measures against more than 70 shadow fleet vessels involved in transporting Russian oil.
It is also proposed to gradually ban the import of Russian aluminum. The sanctions package would allow European buyers to import Russian metal under a quota system for one year before a full ban comes into effect.
These plans will require the support of all member states and may change before being officially proposed to the members.
Aluminum ban
Since the invasion of Ukraine, there have been calls for the EU to ban Russian aluminum, and Russia's exports to the bloc have steadily declined as manufacturers sought alternative suppliers. However, some buyers and member states have continued to resist such measures, citing the difficulty of fully replacing certain key products.
It is not certain that the EU will agree to this package, which would become the 16th against Russia. Hungary has increasingly opposed additional sanctions against Moscow.
This week, the EU faced difficulties in completing the scheduled six-month extension of the sanctions regime against Russia, as Budapest lifted its block just a few days before the sanctions were due to expire.
However, in recent months, there has been growing pressure for tougher measures against Russia's metallurgy sector. Last year, the US and the UK imposed a ban on trading Russian metals on the London Metal Exchange, which caused sharp fluctuations in prices on the exchange and accelerated the reordering of global trade flows.
According to UN Comtrade, in the first 11 months of 2024, the EU imported about 320,000 tons of raw aluminum from Russia, which accounted for 6% of the total import volume. Meanwhile, supplies to China have sharply increased.
Earlier, the EU considered adding liquefied natural gas (LNG) to the sanctions package, but this issue will likely be addressed through a roadmap to phase out this product rather than through sanctions.
Furthermore, this week the EU proposed introducing tariffs on the remaining agricultural products from Russia and Belarus that are not yet subject to tariffs, as well as nitrogen-based fertilizers.
