site.btaEuropean Commission Proposes Ban on Imports of Russian Liquefied Gas

European Commission President Ursula von der Leyen presented proposals for new sanctions against Russia on Friday. The Commission proposes to ban imports of Russian liquefied gas, impose additional restrictions on Russian banks and on exports of certain goods to Russia.

In the last month, Russia has shown contempt for diplomacy and international law, launched some of the most extensive air strikes against Ukraine since the start of the war, hit government buildings and citizens' homes, and struck the EU representation in Kyiv, von der Leyen noted. Threats to the EU are growing, with Russian drones violating the airspace of Poland and Romania in the last two weeks, she added, stressing that these are not the actions of someone who wants peace, and that in response, Europe is increasing its pressure.

Von der Leyen noted that Russia's military economy is supported by revenues from the sale of fossil fuels. “We want to cut these revenues. So we are banning imports of Russian LNG into European markets,” she said, explaining that the EU is prepared for this by  saving energy, diversifying supplies and investing in low-carbon sources of energy like never before. “To strengthen enforcement, we are now sanctioning 118 additional vessels from the shadow fleet. In total, more than 560 vessels are now listed under EU sanctions. Major energy trading companies Rosneft and Gazpromneft will now be on a full transaction ban. And other companies will also come under asset freeze. We are now going after those who fuel Russia's war by purchasing oil in breach of the sanctions. We target refineries, oil traders, petrochemical companies in third countries, including China,” she said.

She added that a ban on transactions with more banks in Russia and banks in other countries is being proposed.  For the first time, restrictive measures will hit crypto platforms and prohibit transactions in crypto currencies. “We are listing foreign banks connected to Russian alternative payment service systems. And we are restricting transactions with entities in special economic zones,” said the EC President, adding that there are also plans to expand the list of goods and technologies used on the battlefield that are banned from direct export to Russia.

The sanctions are having a severe impact on the Russian economy, with interest rates at 17 percent and inflation consistently high. Russia's access to financing and revenue is steadily declining. “We know that our sanctions are an effective tool of economic pressure. And we will keep using them until Russia comes to the negotiation table with Ukraine for a just and lasting peace,” von der Leyen pointed out.

The European Commission's proposals are subject to unanimous approval by EU countries in order to be implemented.