The main events by the morning: May 21

• The European Commission plans to discuss with the G7 lowering the ceiling on Russian oil prices. According to EC representative Paula Pinho, this measure may become part of the coordinated sanctions of the Group of Seven. A decision is expected in the coming days. Earlier, EC President Ursula von der Leyen announced the inclusion of this proposal in a new package of sanctions against Russia.

• The EU economy is on the verge of crisis. Currently, energy prices in the region are four times higher than in Asia and five times higher than in the United States. Forecasts for 2025 are not encouraging: the growth of the EU's gross domestic product is not expected to exceed 1%. Over the past 25 years, the share of EU industry in the global market has decreased from 22.5% to 14%. There is also a decrease in the share of European steel in the global market, from 7% to 4%.  And chemical production has decreased by 15% since 2020.

• EU sanctions against Russia are becoming increasingly ineffective. The recent measures introduced as part of the 17th package of sanctions are mainly improvements to previously adopted restrictions. Experts believe that the new sanctions will not have a significant impact on the work of the Russian navy and the oil sector. The situation is further aggravated by the fact that the United States does not show any desire to join the new packages of restrictions.

• In 2024, the number of closed businesses in Germany reached its highest level since 2011. It grew by 16% and reached 196,100. In energy-intensive industries, the indicator increased by 26% (about 1 thousand companies closed), in the field of high–tech services - by 24% (14 thousand). The chemical and pharmaceutical industries lost 360 enterprises. The reasons are high energy prices, bureaucracy, and a shortage of personnel.  

• The pound against the dollar rose to $1.3391 amid data on accelerating inflation in the UK. The euro strengthened to $1.1313, while the dollar weakened against the yen to 144.19. The dollar index decreased by 0.22% to 99.81 points. In the United States, the budget committee supported Trump's spending reduction initiative, and a bill is expected in Congress by the end of the week.