The European Union is set to unveil a sweeping new round of sanctions aimed at tightening the financial noose on Moscow. The draft package includes cutting over 20 Russian banks from the SWIFT system, banning transactions with more lenders, and formally blacklisting the Nord Stream pipelines to prevent any future revival.

The proposed SWIFT exclusion would further isolate Russia’s financial sector, building on previous rounds of economic penalties since the 2022 invasion of Ukraine.

Germany has thrown its weight behind the EU’s move to ban the Nord Stream 1 and 2 gas pipelines. Chancellor Friedrich Merz stated the decision aims to “temper domestic debate” on reviving the projects, especially amid speculation of renewed interest following Trump’s recent ceasefire overtures to Moscow.

While Nord Stream 2 was never certified and sustained damage in 2022, a formal EU ban would underscore Europe’s commitment to end dependency on Russian gas.

The sanctions package also seeks to lower the G7 price cap on Russian oil exports from $60 to $45 per barrel. That measure requires coordination with the US, which has yet to formally agree. The EU also plans €2.5 billion in new trade restrictions, targeting technologies with potential military applications.

Further sanctions will be levied against Russia’s so-called “shadow fleet” of oil tankers and state-affiliated investment vehicles.

The proposal includes clauses to protect EU companies from investor-state arbitration claims under bilateral treaties, amid concerns that affected firms could seek compensation.

The package will also advance the EU’s broader goal of phasing out Russian fossil fuel imports by the end of 2027, a major pillar of the bloc’s post-war energy strategy.