0:00 Europe has announced another move in its
0:02 economic confrontation with Russia. On
0:05 November 12th, 2026,
0:08 European Commission President Ursula
0:10 Vondaan confirmed that the European
0:12 Union is preparing its 22nd sanctions
0:15 package against Russia. At the same
0:17 time, the commission is preparing a
0:20 financial proposal to cover Ukraine's
0:22 needs in 2027. two developments. One
0:26 larger strategy, Europe wants to
0:28 restrict Russia's ability to generate
0:30 revenue, access international financial
0:33 services, and obtain technology that
0:35 supports its military operations. But
0:38 there is an important question. After 21
0:41 previous sanctions packages, can another
0:44 round of restrictions actually change
0:46 Russia's economic position? or has
0:48 Russia developed alternative financial
0:51 and trading networks that make European
0:53 sanctions less effective? To understand
0:56 what is happening, we need to examine
0:58 three things. Money, technology, and the
1:01 countries helping international trade
1:03 continue. The current sanction system
1:06 developed after Russia launched its
1:08 full-scale invasion of Ukraine in
1:10 February 2022. The European Union
1:13 responded with restrictions covering
1:15 several areas. These included Russian
1:18 banks, access to European financial
1:20 markets, exports of sensitive
1:23 technology, energy related transactions,
1:26 transport, individuals and companies
1:28 connected to Russia's military and
1:30 political establishment. The objective
1:33 was not simply to punish individual
1:35 Russian officials. It was to increase
1:37 the economic cost of continuing the war.
1:40 For example, restrictions on advanced
1:43 electronics and industrial components
1:45 make it more difficult for Russian
1:47 manufacturers to obtain certain foreign
1:50 technologies. Financial restrictions
1:52 make international payments more
1:54 complicated. Energy restrictions aim to
1:57 reduce the revenue Russia receives from
1:59 selling oil and other resources. But
2:02 sanctions do not operate like an
2:04 immediate shutdown of an entire economy.
2:07 Russia continues to trade with countries
2:09 outside the European Union. Its energy
2:12 exports have also found alternative
2:14 destinations and trading arrangements.
2:17 This is one of the central challenges
2:19 facing European policy makers.
2:21 Restricting trade with Europe is not the
2:24 same as preventing Russia from trading
2:26 with the rest of the world. On November
2:29 12th, Ursula Von Delean announced that
2:31 the European Commission would present
2:33 its 22nd sanctions package and a
2:36 proposal for Ukraine's 2027 financial
2:39 needs before the next European Council
2:42 meeting. That meeting is scheduled for
2:44 the 26th and the 27th of November 2026.
2:49 According to Reuters reporting on the
2:51 announcement, the proposed sanctions are
2:54 expected to examine three important
2:56 areas. First, banks and financial
2:59 institutions. Second, cryptocurrency
3:02 platforms and digital financial
3:04 networks. Third, loopholes that allow
3:07 restricted Russian trade and financial
3:09 transactions to continue through third
3:12 countries. The important distinction is
3:14 this. As of November 12th, these are
3:17 proposals under preparation. They are
3:20 not all adopted sanctions. The European
3:23 Commission must present its proposals
3:25 and the member states must agree on the
3:27 measures through the appropriate EU
3:29 procedures for foreign policy sanctions.
3:32 This generally requires unonyimity in
3:34 the council. So the next question is not
3:37 only what Brussels wants to restrict. It
3:40 is whether all 27 EU member states will
3:43 agree on the final measures. Why are
3:45 Russian banks still an important target?
3:48 Because international trade depends on
3:51 financial infrastructure. When a company
3:53 imports industrial equipment, it needs
3:56 to pay the supplier. When an exporter
3:58 sells oil, it needs to receive the
4:00 payment. Banks, correspondent banking
4:03 relationships, and financial messaging
4:05 systems help these transactions happen.
4:08 European sanctions can restrict
4:10 transactions with designated Russian
4:13 banks and financial institutions. But
4:16 international banking is not limited to
4:18 Europe. Russian companies can seek
4:20 alternative institutions and payment
4:23 arrangements in other countries. This
4:25 creates a complicated enforcement
4:27 problem. If a Russian company cannot
4:30 make a particular transaction through a
4:32 European bank, can it route the payment
4:34 through an intermediary elsewhere? That
4:36 is precisely the type of circumvention
4:38 European authorities are trying to
4:40 address. The EU's 21st sanctions package
4:44 adopted on July 23rd, 2026 already
4:48 demonstrated this approach. According to
4:51 the Council of the European Union, that
4:53 package imposed asset freezes on 94
4:56 banks and major financial institutions
4:59 and expanded transaction restrictions to
5:02 additional Russian and non-Russian
5:04 financial institutions. The EU also
5:07 targeted financial networks connected to
5:09 sanction circumvention. This shows that
5:11 the financial restrictions are moving
5:13 beyond simply naming Russian banks. They
5:16 are increasingly concerned with the
5:18 wider networks that make restricted
5:20 transactions possible. The second major
5:23 area is cryptocurrency. Why does
5:25 cryptocurrency matter? Traditional
5:28 international payments usually involve
5:30 banks and established financial
5:32 institutions. Cryptocurrency can provide
5:35 another method of transferring value
5:37 across borders. However, cryptocurrency
5:40 is not automatically anonymous. Public
5:43 blockchains can leave transaction
5:45 records and regulated exchanges may have
5:48 customer identification and compliance
5:51 requirements. The challenge is
5:53 identifying platforms, intermediaries,
5:55 and networks being used to avoid
5:57 financial restrictions. The European
6:00 Union has already taken action in this
6:02 area. Its 21st sanctions package
6:05 included restrictions on 14 cryptoreated
6:08 service platforms based in several
6:10 jurisdictions including Georgia, Panama,
6:14 the United Arab Emirates, Kystan and
6:17 Bellarus. It also introduced the
6:19 possibility of a comprehensive third
6:21 country ban on crypto asset services
6:24 used by Russia. The 22nd package is
6:27 expected to build on this wider
6:29 approach. But there is a practical
6:31 problem. A European restriction does not
6:34 automatically close a cryptocurrency
6:36 platform operating outside European
6:38 jurisdiction. Enforcement therefore
6:41 requires cooperation with financial
6:43 regulators, exchanges, and authorities
6:46 in other countries. The question is
6:48 whether international financial networks
6:50 can be monitored effectively enough to
6:53 prevent restricted transactions from
6:55 simply moving somewhere else. This may
6:58 be the most important part of Europe's
7:00 new sanction strategy. Russia does not
7:02 need to conduct every international
7:04 transaction directly with a European
7:07 company. Trade can involve
7:09 intermediaries. A product manufactured
7:11 in one country may be sold to a
7:14 distributor in another country before
7:16 reaching its final destination. The same
7:19 applies to financial services and
7:21 technology. This creates opportunities
7:23 for sanction circumvention. For example,
7:26 sensitive industrial components may be
7:28 exported to a third country and then
7:31 redirected to Russia. That does not mean
7:33 every company in that country is
7:35 involved in sanctions of Asian. It means
7:38 European authorities must investigate
7:40 the actual supply chain, the companies
7:43 involved, and the final destination of
7:45 restricted goods. The European Union is
7:48 increasingly focusing on these networks,
7:51 and the July 2026 sanctions package
7:54 already included measures against
7:56 non-Russian financial institutions and
7:58 entities connected to these activities.
8:01 The wider question is whether the EU can
8:03 persuade other countries to enforce
8:05 comparable restrictions because
8:08 sanctions are only as effective as the
8:10 enforcement systems behind them. Now
8:12 comes the second major announcement.
8:15 While Europe is preparing additional
8:17 economic pressure on Russia, it is also
8:19 preparing financial support for Ukraine
8:22 in 2027. On November 12th, Vondlayan
8:26 confirmed that the European Commission
8:28 was preparing a proposal to cover
8:30 Ukraine's financial needs for the coming
8:33 year. This is important because
8:35 Ukraine's government must continue
8:37 financing essential public services
8:39 while the country remains at war. These
8:42 include public administration, health
8:45 care, education, and other government
8:47 functions. Military assistance and
8:49 financial assistance are related, but
8:52 they are not the same thing. Financial
8:54 support helps the Ukrainian state
8:56 continue functioning. Military
8:58 assistance supports its defense
9:00 capabilities. In a joint statement
9:03 following their meeting with Ukrainian
9:05 President Veimir Zalinski in Dublin,
9:07 European Council President Antonio Costa
9:10 and Vonda reaffirmed the EU's commitment
9:13 to continuing financial and military
9:16 support. However, the exact details of
9:19 the commission's 2027 financing proposal
9:22 were still to be presented. It is
9:25 therefore important not to confuse an
9:27 announced proposal with money already
9:29 approved and transferred. Europe is
9:31 preparing both sides of its strategy.
9:34 Increasing pressure on Russia while
9:36 helping Ukraine sustain its government
9:38 and defense. There are three realities
9:40 that need to be considered. First, the
9:43 European Union has substantial economic
9:46 influence. It can restrict access to its
9:49 financial institutions, markets,
9:51 technology, and services. Second, Russia
9:55 has alternative international trading
9:56 relationships. Countries outside the EU
9:59 continue to participate in international
10:01 trade with Russia, subject to their own
10:04 laws and applicable restrictions. Third,
10:08 sanctions enforcement becomes more
10:09 difficult when transactions involve
10:11 multiple countries, intermediaries, and
10:14 financial networks. This means economic
10:17 isolation is not a simple yes or no
10:20 question. Europe can make certain
10:22 transactions more expensive, more
10:24 complicated, and more difficult. It can
10:27 restrict access to specific technologies
10:29 and financial services. But that does
10:32 not mean it can completely stop Russia
10:34 from participating in global trade. The
10:36 real test of the 22nd package will be
10:39 whether it closes identifiable gaps in
10:42 the existing sanction system and whether
10:44 the restrictions produce measurable
10:46 economic consequences rather than simply
10:49 expanding the number of names on a
10:51 sanctions list. Europe is preparing its
10:55 22nd sanctions package. It is targeting
10:58 financial networks, cryptocurrency
11:00 services and possible sanctions evasion
11:03 channels. At the same time, it is
11:05 preparing a financial plan to support
11:07 Ukraine in 2027. But the central
11:11 question remains, can Europe turn its
11:13 economic influence into enough pressure
11:16 to change Russia's calculations? Or will
11:19 Russia continue adapting its trade,
11:21 banking, and financial networks around
11:23 European restrictions? The answer will
11:25 depend not only on what Brussels
11:27 announces, but on how effectively those
11:30 measures are implemented across the
11:32 international economy. This is Europe's
11:34 sanctions war and its next chapter is
11:37 now being prepared.