EU bolsters sanctions on Russia: Aluminium ban and swift cuts
The European Union is preparing another package of sanctions against Russia, which is expected to include further restrictions on banks being cut off from the SWIFT system. Additionally, discussion surrounds the targeting of another 70 ships from the so-called "shadow fleet" and imposing a ban on the import of Russian aluminium, reports Bloomberg.
February 24th will mark three years since Russia commenced its full-scale war in Ukraine. Before this anniversary, Brussels intends to impose additional sanctions on Moscow's regime. The package anticipates cutting off more banks from the SWIFT system. Furthermore, a ban on the import of Russian aluminium is being considered.
SWIFT is a vital international payment system for the global financial sector, with no alternative system of its scale. The global economy relies heavily on it.
According to Bloomberg, EU member states imported approximately 320,000 metric tonnes of unprocessed aluminium from Russia over 11 months last year. Not all countries agree with this measure; some have argued that replacing Russian products in the market is a challenge. The proposals do not currently include a ban on imports of liquefied natural gas (LNG), although the document may suggest a gradual phase-out.
This would be the 16th package against Russia, but agreement is not guaranteed, especially from Hungary, which recently blocked the routine six-month renewal of the sanctions system.
Bloomberg highlights growing pressure in recent months to intensify the approach to the metallurgical sector. In 2024, the United Kingdom and the USA introduced a ban on trading Russian metals on the London Metal Exchange, initially causing sharp fluctuations in prices and hastening changes in the global trade flow order.
Targeting oil transfers
The EU's next proposal includes increasing restrictions on Russian planes and those under Russian control. Additionally, there is talk of banning transactions with an extensive list of ports and airports used for the transfer of weapons and parts for their production. This proposal includes exemptions for transfers related to energy and emergency situations, according to the report.
There is also discussion about imposing stricter restrictions on software, equipment, and technology used in the defence industry. The sanctions could impact, among others, Chinese and Turkish companies assisting Moscow in circumventing the restrictions.
