European Commission President Ursula von der Leyen announced on June 11 that the EU has proposed to ban the operation of the Nord Stream 1 and 2 gas pipelines and reduce the price cap on Russian oil by the Group of Seven (G7) from $60 per barrel to $45 per barrel as part of a new sanctions plan, aiming to cut off the Russian government’s revenue sources. Von der Leyen emphasized that “the only language Russia can understand is power”, and this move is aimed at increasing pressure on Russia to end the war in Ukraine. The proposal requires unanimous approval from 27 member states and is expected to be discussed at the EU Foreign Ministers’ meeting on June 23.
Lowering the upper limit of oil prices requires the support of the United States and other G7 members. Von der Leyen said that G7 leaders would discuss the matter at the summit in Canada this month and believed that all parties could reach an agreement. German Chancellor Metz called on the United States to join the sanctions, saying that the blow to the Russian economy was “heavy”. Although US President Trump was previously ambiguous about the ceasefire, lawmakers from both parties are pushing for sanctions legislation. In addition, the EU also plans to exclude 22 Russian banks from the SWIFT system, restrict trade worth 2.5 billion euros, and impose new bans on Russia’s “shadow fleet”.
Although the Nord Stream pipeline has been out of operation since 2022, the ban aims to put an end to speculation about “resuming gas supply”. Von der Leyen said, “We can’t go back to the past,” and the German government also supported this decision. Analysis indicates that even without an official ban, Nord Stream 2 has been difficult to restart due to damage from the explosion and political factors. The new measures of the European Union mark a further escalation of sanctions against Russia, attempting to continue isolating Russia in the economic and technological fields.
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