Three sources told Reuters that the European Commission has planned a new set of sanctions against Russia and Belarus in response to the Russian invasion of Ukraine, which will target more Russian oligarchs, politicians, and also 3 Belarusian banks.
On Tuesday morning, the proposed measures were approved by the EU executive which would later be addressed by EU ambassadors said one source. The sanctions coming up are targeted at the Russian shipping industry and the Belarusian financial sector.
In the new set of sanctions, 3 Belarusian banks are said to be banned from the SWIFT banking system. The names of these financial institutions will not be revealed said the source to Reuters. The EU will also add more more oligarchs and Russian legislators to their blacklist amongst which are members of the Russian Parliament’s upper house.
In the draft package, the sources have said that the EU will prohibit the supply of naval equipment and software to Russia in the attempt to hinder their shipping industry.
Along with bans from the SWIFT and exports of maritime equipment, cryptocurrencies transactions will also be observed to make sure that the banned parties do not skirt EU sanctions according to the sources.
Ukraine along with their allies in the west reject the claim of disarming their contenders and call it a ‘bogus excuse’ for Russia to seize their country.
President Biden of the United States announced on Tuesday the ban on Russian oil and gas imports to the US in an attempt to end Russia’s assault on Ukraine. He said, “we’re banning all imports of Russian oil and gas energy.”
“That means Russian oil will no longer be acceptable in U.S. ports and the American people will deal another powerful blow to Putin’s war machine.”
Going forward, Ukraine and the US are urging the EU to also target Russia’s supply of oil and gas in the sanctions. The UK has set a path to use alternative oil sources by the end of 2022. British Business Secretary Kwasi Kwarteng said on Tuesday that costs are being estimated and a task force to search for alternative sources is in the works.
Danni Hewson, Financial Analyst, AJ Bell said, “it’s been trailed for days but many didn’t expect the US and the UK to follow through on their threats to ban Russian oil. The US has gone even further saying coal and gas imports are also off the table, ‘a powerful blow’ to President Putin’s leadership said the US President and one which is already having global ramifications.”
“The price of oil has been heading higher all day as markets waited for the news to come through when it did it just added to the volatility Wall Street had already been experiencing. “
“There are big questions about how the world deals with both the current crisis and the longer-term shifts in supply and demand. Will it stimulate new exploration for those much prized and incredibly lucrative oil and gas supplies or will it speed up the transition to cleaner, greener fuel sources. Whichever way the pendulum swings there is little doubt the consumer will suffer in the short term and inflation numbers which have been bandied around in the US and UK might be looking a little optimistic in the cold light of today’s announcement.”
In past, recommended sanctions against Russia and Belarus have been approved without any alterations by EU diplomats.
Through sanctions issued, 7 Russian banks had been displaced from SWIFT however, no Belarusian banks were blacklisted. From Russia’s lower house, a large number of members have been fined for their vote in support of Russia’s control over Donbas, the southeastern Ukrainian regions of Donetsk and Luhansk.