Let me continue on the topic of sanctions.

We want peace for Ukraine. Despite weeks of diplomatic attempts and President Zelenskys offer of an unconditional ceasefire, Russia continues to bring death and destruction to Ukraine. Russias goal is not peace; it seeks to impose its rule by force. Therefore, we are increasing pressure on Russia, as strength is the only language it understands.

The Russian economy is severely impacted by the sanctions, with 210 billion EUR of the Central Banks reserves immobilized. Revenues from oil and gas have dropped by nearly 80% compared to before the war. The deficit is soaring, interest rates are extremely high, and inflation is rising, well above 10%. The cost of importing technology and critical goods is six times higher than before the war. In summary, Russia is confined to a war economy and sacrificing its future prospects.

Our message is clear: this war must end. We need a genuine ceasefire, and Russia must come to the negotiating table with a serious proposal. Given its current unwillingness to pursue peace, we will intensify pressure on Russia through further robust sanctions. Thus, we are proposing an 18th package of stringent sanctions targeting two sectors: Russias energy and banking sectors. We are expanding export bans and controls and strengthening anti-circumvention measures.

First, regarding energy: for the first time, we propose a transaction ban for Nord Stream 1 and 2, meaning no EU operator can engage in any transactions related to these pipelines. There is no going back.

We also propose to lower the oil price cap from 60 to 45 dollars per barrel. Since the introduction of the oil cap in 2023, prices have decreased, now trading close to the cap level. Lowering the cap adjusts it to current market conditions and restores its effectiveness.

Oil exports still account for one third of Russias government revenue. We need to cut this revenue source. The oil price cap is a G7 coalition measure, and we will discuss coordinated actions at the G7 Summit in Canada. Additionally, to enhance enforcement of the cap, we are listing 77 more vessels part of the Russian shadow fleet, which are used to evade sanctions. This action significantly limits Russias options for exporting oil. Finally, we introduce a ban on importing refined products derived from Russian crude oil to prevent any backdoor access to the EU market.

Now, looking at the banking sector: we aim to limit Russian banks ability to raise funds and conduct transactions by transforming the existing prohibition on using the SWIFT system into a full transaction ban, applying it to an additional 22 Russian banks.

We will also extend the transaction ban to financial operators in third countries that finance trade with Russia to circumvent sanctions, and we will sanction the Russian Direct Investment Fund and its subsidiaries, limiting a key funding channel for modernizing the Russian economy.

Furthermore, we propose additional export bans worth over 2.5 billion euros, depriving the Russian economy of critical technology and industrial goods, targeting machinery, metals, plastics, and chemicals used in industry. We will also restrict exports of dual-use goods and technologies used in producing drones, missiles, and other weapon systems to ensure Russia cannot modernize its weapons with European technology.

Lastly, we want our sanctions to be better applied and enforced, which is why we are broadening the scope of existing transaction bans and listing 22 Russian and foreign companies that provide direct or indirect support to Russias military and industrial complex. Putins ability to sustain the war largely depends on support from third countries. Those who aid Russias war efforts bear heavy responsibility.

With this package, we intensify pressure on Russia. Our objective is clear: we reiterate the call for a full, unconditional ceasefire of at least 30 days. This pause in hostilities could be a crucial step toward reducing civilian suffering and creating space for meaningful discussions for genuine peace.