The European Union has approved the 18th sanctions package against the Russian Federation, which experts estimate to be one of the toughest to date. The next step will be the consideration of this package by the EU Council. The new restrictions include an updated dynamic price ceiling on oil from Russia, as well as a complete ban on any operations involving the “Nord Stream” and “Nord Stream 2” pipelines.
This is reported by Finway
Main Provisions of the New EU Sanctions Package
The 18th sanctions package contains a number of strict measures, including:
- the introduction of a dynamic price ceiling on oil, which will be set at 15% below the average market price of crude oil over the previous three months;
- a complete ban on all operations and agreements involving the “Nord Stream” and “Nord Stream 2” pipelines;
- the expansion of the blacklist by an additional 105 vessels of the so-called “shadow fleet” of the Russian Federation, as well as their suppliers;
- strengthening financial restrictions for Russian banks, including disconnecting even more institutions from SWIFT and implementing measures against banks, including Chinese ones, that help Russia evade sanctions;
- the expansion of the sanctions list to include individuals and legal entities involved in the ideological indoctrination of Ukrainian children.
“The EU has just approved one of the strongest sanctions packages against Russia to date. We are further reducing the Kremlin’s military budget, targeting another 105 shadow fleet ships, their suppliers, and limiting Russian banks’ access to financing. The construction of the ‘Nord Stream’ pipelines will be prohibited. (It will be. – Ed.) a lower oil price floor,” said Kallas.
Ukraine’s Reaction and Features of the New Price Limitation Mechanism
Ukrainian President Volodymyr Zelensky welcomed the EU’s decision and thanked partners for increasing sanctions pressure on the aggressor. According to him, the introduction of a dynamic price ceiling on oil and restrictions on pipelines is a response to the intensification of Russian missile strikes on Ukrainian cities and villages. Zelensky emphasized the importance of synchronizing sanctions policy with European partners and announced the preparation of new decisions at both the external and national levels.
According to the new mechanism, the price ceiling on Russian oil will take on a dynamic nature instead of a fixed value. It will be calculated as 15% less than the average market price of crude oil over the last three months. Initially, this is approximately $47 per barrel. The review will occur every six months, rather than three, as previously planned.
It is worth noting that the price ceiling on Russian oil transported by sea was first introduced by EU and G7 countries in December 2022, with the aim of reducing Kremlin revenues and limiting war financing, while avoiding a global energy resource shortage. Since February 2023, the restrictions have also applied to petroleum products: $100 per barrel for diesel fuel, $45 for fuel oil.
Despite the sanctions, Russia is seeking ways to circumvent them, including through the creation of a large shadow fleet and providing false information about oil loading ports. A significant portion of this fleet consists of old vessels with questionable or nonexistent insurance, posing a serious environmental threat.
The EU and the UK have insisted on lowering the price limit since May 2025, as $60 per barrel under declining global prices has become profitable for Russia. The new dynamic approach is expected to make the sanctions more effective and significantly limit the aggressor’s revenue from energy resource exports.