EU gives Putin an ultimatum – new sanctions threaten if the war expands!

EU gives Putin an ultimatum – new sanctions threaten if the war expands!

The EU has noticeably increased the pressure on Russia in the wake of the Ukraine war. On May 15, 2025, a new package of sanctions was announced, specifically targeting the Russian Shadow Fleet, which plays a crucial role in evading Western sanctions. The pressure on President Vladimir Putin is also being increased by an ultimatum that Germany has given regarding a ceasefire.

On May 10, 2025, heads of state and government from Germany, France, Great Britain and Poland met in Ukraine. They called for an unconditional ceasefire of 30 days starting next Monday. However, Kremlin spokesman Dmitry Peskov rejected the ultimatum as unacceptable. Putin, on the other hand, said he was ready for direct negotiations with Ukraine, but questioned the call for a ceasefire. Ukrainian President Zelenskyj appeared willing to talk, but insisted on observing the ceasefire.

Sanctions against the Shadow Fleet

The new sanctions package, published on May 14, 2025, is expected to include far-reaching measures against Russia's shadow fleet. This fleet, made up of dilapidated tankers, is crucial to allowing Russia to continue exporting large quantities of oil, gas, Ukrainian grain and stolen coking coal while avoiding Western sanctions. According to the Frankfurter Rundschau Details of the package could include extending sanctions to 100 ships and more than 50 people and companies, including five from China.

In addition, 200 other ships were banned from calling at EU ports. Operators of these ships will no longer be able to use the services of European companies. 30 economic actors have already suffered from export restrictions, while 75 other people and companies have been excluded from doing business in the EU. Sanctions imposed on the Shadow Fleet have already led to China closing some ports to Russian tankers.

Impact on the Russian economy

Previous sanctions have reduced Russian oil and gas revenue by more than a third since 2022. In 2024, Russian oil and gas industry revenues rose 26% to 11.1 trillion rubles, but fell short of expectations. Russia's current budget deficit is now 3.49 trillion rubles.

The EU's planned measures could also put further strain on the Russian energy sector, including the possibility of completely halting gas imports from Russia. Currently, around 20% of the natural gas used in the EU comes from Russia. A complete stop could have serious, far-reaching economic consequences for the country. In addition, new sanctions against the Russian banking sector are also being discussed, such as a further decoupling from the Swift banking system.

Chancellor Friedrich Merz has made it clear that new sanctions will be considered if there is a lack of progress in talks between Ukraine and Russia. The EU is thus demonstrating its determination to strengthen its position in the conflict and to persuade Russia to rethink its approach.