The sanctions package, still in development, is expected to focus not only on Russian financial institutions but also on third-party banks that are suspected of facilitating Moscow’s war effort. 

The European Union (EU) is preparing a fresh wave of sanctions aimed at the Russian financial sector, signalling a hardening stance against Moscow as Ukraine’s allies ramp up efforts to pressure President Vladimir Putin into serious peace negotiations.

European Commission, President Ursula von der Leyen, confirmed the plans during remarks in Tirana on Friday, where EU leaders gathered for the European Political Community summit.

According to Bloomberg, European Commission President Ursula von der Leyen, told reporters, “We want peace and we have to increase the pressure on President Putin until he is ready for peace. 

“And this is why we’re working on a new package of sanctions.”

The sanctions package, still in development, is expected to focus not only on Russian financial institutions but also on third-party banks that are suspected of facilitating Moscow’s war effort. 

A source familiar with the deliberations, who requested anonymity due to the sensitivity of the discussions, said the move represents a significant escalation in the EU’s economic response.

The renewed momentum for tougher measures follows a diplomatic setback in Istanbul, where negotiation teams from Kyiv and Moscow met for the first time in over three years. 

Ukrainian President, Volodymyr Zelenskyy, swiftly dismissed the Russian delegation as a “sham” after Putin sent only a low-level team to the talks.

Von der Leyen criticised the Russian leader for failing to attend the meeting in person. 

“This shows the true belief of President Putin: He doesn’t want peace,” she said. “So we have to increase the pressure.”

Echoing that sentiment, EU Economy Commissioner, Valdis Dombrovskis, described Moscow’s approach to the negotiations as unserious. 

“Russia is playing games,” he said in an interview on the sidelines of the summit. 

“It’s important that this new sanctions package is stronger and more ambitious and really provides that pressure.”

The proposed measures are expected to include sanctions on the Nord Stream pipelines, a lower oil price cap, and additional listings targeting vessels that are part of Russia’s shadow fleet, von der Leyen said.

This would build on the EU’s recently approved 17th sanctions package, which targeted individuals and entities helping Moscow evade energy restrictions, as well as its shadow oil fleet. 

The EU sanctions must receive unanimous backing from all 27 member states to be enacted.

Ukraine and several European powers have jointly called for a 30-day unconditional ceasefire to allow space for meaningful negotiations. 

While Putin has floated the idea of resuming direct talks in Turkey, he has so far resisted calls for a truce.

As tensions persist and negotiations stall, the EU appears poised to tighten the economic noose around Moscow’s war machinery.

“More pressure is needed,” Dombrovskis said.