EU Approves Sweeping New Sanctions on Russia
The European Union on Thursday adopted its 18th sanctions package against Russia, delivering one of the most far-reaching economic blows since the start of Moscow’s full-scale invasion of Ukraine in 2022. The package, which includes tighter enforcement of the oil price cap, new restrictions on financial institutions, and a ban on hundreds of shadow tankers, underscores the bloc’s resolve to weaken Russia’s economic foundation.
By targeting oil revenues, financial systems, and covert fleets, the EU aims to limit Moscow’s ability to sustain its aggression in Ukraine, while navigating the delicate balance of global energy and economic stability.
The new measures were adopted after days of negotiation, following initial resistance from Slovakia and Malta. Slovakia ultimately dropped its objections after receiving guarantees regarding the timeline of future gas import restrictions, specifically postponing a full ban until 2028.
At the heart of the package is a recalibration of the oil price cap mechanism first introduced in late 2022. The new framework lowers the ceiling on Russian crude exports from $60 per barrel to approximately $47.60—set at 15 percent below the rolling average market price—and institutes a biannual adjustment mechanism. European officials say this approach is meant to cut deeper into the Kremlin’s oil revenue stream without triggering global price shocks.
Also central to the package is a sharp expansion of maritime restrictions. The EU added 105 tankers to its blacklist, bringing the total number of vessels sanctioned for evading oil-related restrictions to more than 400. Officials say these ships are part of Russia’s so-called “shadow fleet”—a loosely organized network of aging tankers operating under obscure ownership and often flagged in jurisdictions with limited oversight. Several non-Russian entities, including an Indian refinery linked to Rosneft and a national flag registry, were also sanctioned for facilitating these illicit transfers.
The EU also imposed a full import ban on petroleum products derived from Russian crude—even when refined in third countries—unless they originate from a narrow list of allies, including the United States, Canada, Norway, Switzerland, and the United Kingdom. All commercial activity related to the Nord Stream 1 and 2 pipelines, already out of operation, has now been formally prohibited.
In the financial sphere, the package cuts off 22 additional Russian banks from EU systems and services, and extends asset freezes to Russia’s National Wealth Fund and the Russian Direct Investment Fund. European regulators were also granted new authority to sanction non-EU banks and cryptocurrency firms that assist Russia in circumventing the oil price cap.
In total, dozens of individuals and entities from China, Hong Kong, Turkey, and Central Asia were blacklisted for enabling sanctions evasion.
“We are closing the net,” one senior EU diplomat said. “This is not just about punishment—it’s about strategic pressure. Every ruble we cut from their war chest counts.”
The Kremlin has yet to formally respond to the measures, though state media described them as “economic aggression.” EU officials insist the sanctions will remain in place as long as Russia continues its war in Ukraine.
