EU’s 18th Sanctions Package Against Russia: Strongest Yet on Energy, Banking and Trade

The European Union has adopted its 18th package of sanctions against Russia, which Brussels calls one of the toughest measures since the start of the war.

Approved on July 18, 2025, the sanctions target Moscow’s energy revenues, banking system, trade flows, and networks of companies aiding in sanctions evasion, the EU statement says.

EU High Representative Kaia Kallas emphasized, “The EU just approved one of its strongest sanctions packages against Russia to date. Each sanction weakens Russia’s ability to wage war. The message is clear: Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war.“

Key Energy Sanctions against Russia

Energy has always been Russia’s most significant source of foreign currency and state revenue. The latest package seeks to weaken these earnings more decisively than ever.

The measures not only cut deeper into Moscow’s oil exports but also block loopholes previously used to keep trade flowing through intermediaries and shadow fleets. Among the most important steps are

• The oil price cap has been reduced from $60 to $47.6 per barrel, and a dynamic adjustment mechanism has been implemented to ensure that the cap keeps pace with market fluctuations.
• Ban on importing petroleum products refined from Russian oil in third countries, closing a major loophole (exceptions were made for Norway, the US, the UK, and Canada).
• Complete ban on transactions with Nord Stream pipelines, halting any future service, maintenance, or use of the infrastructure.
• Sanctions on 105 vessels from Russia’s “shadow fleet” that circumvent oil restrictions, raising the total number of blacklisted ships to more than 400.

Financial Restrictions

The financial sector has been one of Russia’s lifelines for sustaining war spending. The EU’s 18th package introduces significant new restrictions designed to cut Russia off from global capital and punish third-country institutions helping Moscow bypass restrictions. Specifically, the package includes:

• • The SWIFT ban expanded to cover 22 more Russian banks, nearly doubling the sanctioned financial institutions and deepening Russia’s financial isolation.
• Russian Direct Investment Fund (RDIF) and its affiliated companies sanctioned, preventing them from raising foreign capital or investing abroad.
• Stricter rules for third-country banks that facilitate sanction evasion, oil trade, or defense industry support, ensuring external actors face higher risks if they cooperate with Moscow.

Trade and Industry Controls

Beyond finance and energy, the EU is targeting Russia’s ability to maintain and modernize its industrial and military base.

The package significantly expands export bans and focuses on global supply chains that help sustain Russia’s defense industry. The new restrictions include:

• 26 more companies sanctioned, including 11 outside Russia (7 in China, 4 in Turkey) for aiding sanctions evasion.
• Export bans on high-tech equipment, including machine tools used in the production of Iskander missiles.
• Expanded transit restrictions to cover new categories of goods related to construction, transportation, and energy infrastructure.
• Broader export bans on industrial products, including those from the machine-building, chemical, metals, and plastics industries, limiting Moscow’s access to critical materials.

Political Dynamics Behind the Deal

Negotiations for the 18th sanctions package were tense, as Slovakia and Malta initially resisted, citing economic concerns. Their withdrawal of objections in mid-July finally paved the way for adoption. The package also expands measures against Belarus, reflecting Minsk’s growing role in aiding Moscow’s war effort.

Altogether, 55 new names were added to the sanctions list: 14 individuals and 41 entities. This brings the total number of sanctioned people and organizations to more than 2,500.

Strategic Implications

The latest measures send a clear message: the EU is committed to sustaining long-term economic pressure on Russia.

By lowering the oil price cap, sanctioning shadow fleet tankers, and closing loopholes in trade and finance, Brussels is not only limiting Russia’s war revenues but also warning third countries against collaboration.

These sanctions mark one of the EU’s most comprehensive attempts to undermine Russia’s war economy while reinforcing unity among member states after months of negotiation.

FAQs

1. What is the focus of the EU’s 18th sanctions package?
It targets Russia’s energy exports, financial institutions, trade networks, and sanctions evasion.

2. How does the new oil price cap work?
It lowers the cap from $60 to $47.6 per barrel with a mechanism to adjust prices dynamically.

3. Who else is affected outside Russia?
Companies in China and Turkey were sanctioned for helping Russia bypass restrictions.

4. How many people and entities are now on the EU sanctions list?
More than 2,500 individuals and entities are currently under EU restrictions.

5. Why was the package delayed?
Slovakia and Malta initially blocked the agreement but later lifted objections.