The European Union has adopted its 18th sanctions package against Russia, intensifying pressure over the war in Ukraine. The new measures target Russia’s energy revenue, reduce the oil price cap, and expand financial and trade restrictions.
A key change is the revised oil price cap. Previously set at $60 per barrel, it will now be dynamically pegged at $15 below market rates—starting around $47.6—and updated at least twice a year. This aims to curtail Russia’s oil revenues, though past caps have had limited effect due to enforcement challenges and Russia’s use of a “shadow fleet” to bypass restrictions.
The package blacklists 105 additional tankers, bringing the total sanctioned fleet to over 400, and blocks trade with firms and banks—including Chinese entities—accused of helping Russia evade sanctions. It also cuts off about 20 more Russian banks from the SWIFT system and imposes a full transaction ban.
New restrictions also apply to fuels refined from Russian crude abroad—particularly from countries like India, which imports large volumes. These curbs could affect European diesel markets, which have already shown signs of tightening.
Gas-related sanctions include a ban on transactions tied to the Nord Stream pipelines.
Approval was delayed by Slovak Prime Minister Robert Fico, who sought concessions on phasing out Russian energy. Once Slovakia and Malta dropped their objections, the deal moved forward. However, the U.S. has not backed the EU’s push to lower the oil price cap, weakening enforcement, as global oil transactions still rely heavily on U.S. financial systems.