EU to Expel Over 20 Russian Banks from SWIFT Under New Sanctions Plan

Brussels – The European Union is considering a proposal to disconnect over 20 Russian banks from SWIFT, the global financial messaging system, as part of its upcoming 18th sanctions package against Russia, according to Bloomberg.

The potential measures come amid renewed global efforts to negotiate a ceasefire between Russia and Ukraine. While former U.S. President Donald Trump has called for direct peace talks, Russia continues to reject a U.S.-proposed 30-day ceasefire.

This development follows the EU’s adoption of its 17th sanctions package on May 20, which primarily targeted Russia’s shadow oil tanker fleet. Although EU officials in Brussels hailed the move as a sign of persistent resolve, some internal critics within the bloc have described the measures as insufficient given the current geopolitical urgency.

How strong is the EU’s 18th sanctions package?

As reported by Bloomberg, the forthcoming sanctions may also include lowering the G7 oil price cap on Kerlmin crude exports from $60 to approximately $45 per barrel. Other proposed plans involve a ban on the Nord Stream gas pipelines and about 2.5 billion euros in new trade restrictions.

The European Commission is currently evaluating the proposals in collaboration with EU member states. For the sanctions to take effect, all 27 countries must unanimously approve the package. As such, details may still be negotiated and revised before official implementation.

Why is the EU targeting Russian banks in sanctions?

The sanctions aim to reduce Russia’s revenue streams and limit its ability to acquire Western technologies vital for weapons production. The proposed reduction of the G7 oil price cap is a central measure in the collective response strategy; however, it would also depend on support from the United States. Despite ongoing tensions, the U.S. has resisted implementing further sanctions under the Trump administration.

Bloomberg also revealed that the EU is preparing to tighten restrictions on Russia’s shadow fleet of oil tankers, expand banking bans linked to military activities, and target the Russian Direct Investment Fund. Furthermore, the European Commission is pushing to include protective clauses for European firms against arbitration claims tied to sanctions-related treaty violations.

What role does Trump play in sanction strategy?

According to The New York Times, on May 20, Trump declined to impose additional sanctions on Russia, citing concerns that such actions could jeopardize future business and trade opportunities with Moscow.

Following a two-hour phone call with Russian President Vladimir Putin, Trump remarked that further sanctions could “make it much worse,” though he did not completely rule them out.