The European Union is considering the possibility of imposing new sanctions on about half a dozen Russian banks and energy companies as part of the latest round of measures aimed at pressuring the Kremlin to end the war against Ukraine, writes Bloomberg.
According to agency sources, the 19th sanctions package will affect Russia's payment systems, cryptocurrency exchanges, and also limit oil trade.
At the same time, European officials are trying to coordinate their actions on imposing sanctions with Washington, which expects more decisive steps from the EU. "We are ready to increase pressure on Russia, but we need our partners in Europe to follow our lead," said Finance Minister Scott Bessent on Sunday in an interview with NBC's program.
US President Donald Trump has so far refrained from imposing direct sanctions against Russia, despite missing several self-imposed deadlines and Putin still unwilling to negotiate an end to the war. However, Trump has doubled tariffs on India to 50% due to its ongoing purchases of Russian oil.
In addition to additional tariffs on exports to buyers of Russian oil, the US is considering imposing sanctions on Moscow's "shadow fleet" of oil tankers and energy companies "Rosneft" and "Lukoil" as part of a range of possible options, Bloomberg previously reported. Furthermore, the EU is considering a ban on the export of more goods and chemicals used by Moscow's military industry, as well as trade restrictions on foreign companies, including in China, that supply these goods. Among other measures being considered are visa issuance restrictions, port restrictions for vessels under sanctions, and sanctions on services like artificial intelligence with military significance, sources added.
Meanwhile, as writes Financial Times, the war economy continues to hit Russia itself. Oil and gas revenues have fallen by 20% since the beginning of the year, GDP growth has slowed nearly threefold, and the budget deficit has reached 4.9 trillion rubles ($61 billion) instead of the planned 0.5% of GDP, the publication writes.
Economists believe that the "gaps" will be filled with new borrowings and partially by the reserve fund, half of which has already been spent on the war. Problems are exacerbated by a labor shortage, a decline in the coal industry, deteriorating credit quality, and a strengthened ruble (the stronger it is, the fewer rubles the budget receives from selling oil and gas for foreign currency, making it harder to fill the deficit).
Experts note that the Kremlin is facing the need for real "trade-offs" in the budget for the first time – it will have to choose between military spending and social programs. Meanwhile, the risk of recession is becoming increasingly possible.