The European Commission has announced a comprehensive new sanctions package aimed at Russia, intending to exert increased pressure on Moscow amid the ongoing conflict in Ukraine.

A key proposal within this package includes reducing the price cap on Russian seaborne crude oil from $60 to $45 per barrel.

Additionally, the sanctions will target companies involved in the operations of the Nord Stream pipelines, which are currently non-operational.

The Commission has emphasized the need to heighten pressure on Russia, with President Ursula von der Leyen stating in a press conference that adjustments to sanctions are necessary due to the recent moderation in oil prices.

The new sanctions stipulate that countries which have adopted the oil price cap will only be permitted to purchase Russian crude oil via maritime routes if the price does not exceed the designated limit.

However, the implementation of these measures requires unanimous approval from all EU member states, including Hungary and Slovakia, which have previously expressed opposition to further sanctions against Russia.

Slovak Prime Minister Robert Fico has publicly stated his intention to veto sanctions that he claims violate Slovak national interests.

The cooperation of the United States is also considered essential for the execution of the sanctions, particularly in light of the G7 finance ministers' failure to reach an agreement in May, where the previous Trump administration did not support a reduction of the price ceiling.

The EU is hopeful for a political consensus on the proposed modifications during the upcoming G7 summit scheduled for June 15–17 in Canada.

This summit will also include invitations extended to India, the largest global oil importer, alongside Brazil and Mexico.

David O’Sullivan, the EU's sanctions envoy, noted that the starting point for the new price cap will hinge on whether consensus can be reached among G7 member states.

He suggested that even if the U.S. does not join, there may still be merit in advancing the proposal if the EU and other G7 countries agree on a lower price.

Brussels aims to harmonize its measures with U.S. policy while simultaneously recognizing the necessity of Hungary's support.

The Orbán government has indicated it will consider supporting any sanctions package based on its alignment with ongoing diplomatic efforts for a ceasefire in the Russia-Ukraine conflict advocated by former President Trump.

Remarkably, the Hungarian government is not expected to threaten a veto this time, indicating a possible acceptance of the 17th sanctions package without opposition.

President von der Leyen also discussed the sanctions with U.S. Senator Lindsey Graham, who is advocating a bipartisan bill imposing tariffs on countries purchasing Russian energy.

A critical element of the new sanctions is the expansion of punitive measures against the Russian 'shadow fleet', targeting 77 companies that operate or manage these vessels, including entities based in the United Arab Emirates, Mauritius, and Hong Kong.

In a significant shift, the Hungarian government is reportedly seeking to remove eight names from the EU's sanctions list concerning Russia, having agreed after negotiations to endorse the extension of sanctions against Russia.

EU officials have suggested that limiting the capacity for sanctioned vessels to dock would compel Russia to seek new vessels, which would incur additional costs and reduce profits.

Kaja Kallas, the EU's foreign policy chief, has articulated that the economic pressure on Russia must escalate as long as its military actions continue in Ukraine.

The package also targets 22 third-country companies, including Chinese and Belarusian firms, that have been identified as indirectly supporting Russia's military activities in Ukraine.

Furthermore, 42 new individuals and entities will be added to the sanctions lists; this includes nine private individuals and 33 organizations engaged in actions undermining Ukraine’s territorial integrity, alongside an additional four names linked to Belarus.

This new round of sanctions will bring the total count of individuals and organizations sanctioned since February 2022 to over 2,500.

EU leaders are aiming for approval of the sanctions package from member states before the end of July.

Despite widespread anti-sanction propaganda, public opinion in Hungary indicates that a majority of citizens support punitive measures against Russia.