The European Commission has welcomed the Council’s adoption of the 18th sanctions package against Russia, a move designed to increase pressure on Moscow and reinforce the EU’s commitment to a just and lasting peace in Ukraine.
This latest round of sanctions zeroes in on five key areas: slashing Russia’s energy revenues, targeting its banking system, crippling its military-industrial operations, tightening loopholes that allow sanctions to be bypassed, and holding Russia accountable for war crimes—especially against Ukrainian children and cultural institutions. The package also introduces fresh sanctions against Belarus.
With this action, the number of sanctioned vessels in Russia’s so-called “shadow fleet” reaches 444, and the list of sanctioned individuals now exceeds 2,500.
Key Highlights of the New Sanctions Package
Energy Measures
- Oil Price Cap Lowered: The price ceiling for Russian crude oil drops from $60 to $47.60, with a new automatic mechanism ensuring the cap stays 15% below the six-month average market price for Urals crude.
- Nord Stream Ban: EU companies are now banned from engaging in any transactions related to the Nord Stream 1 and 2 pipelines.
- Import Ban on Refined Oil: The EU now blocks imports of oil products made from Russian crude—even if processed outside of Russia.
- Vessel Listings: 105 new ships added to the banned list, including those linked to the shadow fleet. Port access and service bans apply. A few LNG tankers were removed following promises to avoid Russian routes.
- Sanctions on Shadow Fleet Network: Asset freezes and travel bans now extend to operators, traders, and even a refinery in India owned by Rosneft. For the first time, a ship captain and a flag registry operator are sanctioned.
Financial Measures
- Full Transaction Ban on 23 Banks: Extends beyond messaging services to block all business activity.
- 22 More Russian Banks Added: Total now stands at 45 financial institutions under full transaction bans.
- Crackdown on Third-Country Operators: Includes crypto firms that help Russia dodge sanctions or support its war.
- Ban on Russian Direct Investment Fund (RDIF): Prohibits dealing with any business linked to RDIF, freezing out its investments and affiliated entities.
- Banking Software Restrictions: Now includes prohibitions on providing key banking-related software to Russian entities.
Trade Measures
- Tighter Export Bans: Focus on cutting off advanced tech and sensitive materials. New bans represent €2.1 billion in trade based on 2024 levels.
Anti-Circumvention Measures
- 26 Entities Sanctioned for Evasion: Includes firms in Russia, Türkiye, and China linked to the Russian military.
- Expanded Transit Ban: Now includes eight new categories of goods, two of which are key to the energy industry.
- Catch-All Provision Introduced: Gives Member States more authority to block suspicious exports likely to be diverted to Russia.
Targeting Russia’s Military Supply Chain
- 55 New Designations: Focus on companies supporting Russia’s defense industry—including Chinese suppliers.
- Sanctions on Belarusian Arms Makers: Eight additional firms now listed for aiding Russia’s military.
Accountability Measures
- Focus on Child Deportation and Indoctrination: Adds individuals involved in Russia’s forced “military education” of Ukrainian children, bringing the total number of listings related to this to over 80.
- Cultural Manipulation and Propaganda: New sanctions target Russian figures distorting Ukrainian culture and spreading disinformation.
Investor Arbitration Protection
- ISDS Shielding: Measures introduced to guard EU states from being sued under investment treaties by sanctioned entities. Member States can now recoup damages from such arbitration cases.
New Sanctions on Belarus
- Arms Ban: EU entities prohibited from purchasing weapons from Belarus.
- Tech Controls: New catch-all provision for advanced tech, plus a full transaction ban replacing the previous messaging restriction.
- Arbitration Safeguards: Same protections extended to Belarus-related disputes.
- Export Bans Expanded: More sensitive tech and industrial products are now off-limits.
- Additional Listings: One more Belarusian entity restricted, and eight added to the asset freeze list.
