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EU's von der Leyen: We will phase out Russian supply of crude oil and refined products

The European Commission President, Ursula von der Leyen, announced the sixth round of sanctions against Russia this Wednesday. The proposal, which will require approval from all 27 EU countries, included phasing out the Russian supply of crude oil within six months, refined products by the end of the year and cutting major Russian banks from SWIFT.

Market reaction

Traders reacted little to the latest headlines as the focus remains glued firmly on the outcome of a two-day FOMC monetary policy meeting, scheduled to be announced later during the US session. Nevertheless, the development added to worries the European economy, which relies heavily on Russia to meet its energy needs, will suffer the most from the Ukraine crisis. This, in turn, should continue to act as a headwind for the shared currency and supports prospects for a further near-term depreciating move for the EUR/USD pair.

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