EU Enacts Toughest Sanctions Yet Against Russia to Support Ukraine

On Friday, EU nations approved a fresh set of sanctions against Russia in response to its invasion of Ukraine, which includes a reduction in the price cap for Russia’s oil exports worldwide.

This marks the 18th round of sanctions imposed since the invasion in 2022. The agreement followed Slovakia’s withdrawal of a prolonged blockade after discussions with Brussels regarding separate initiatives aimed at phasing out Russian gas imports.

“The EU has just endorsed one of its most powerful sanctions packages against Russia to date,” stated Kaja Kallas, the EU’s foreign policy chief. “Every sanction undermines Russia’s capacity to conduct warfare. The message is unequivocal: Europe is steadfast in its support for Ukraine.”

Slovakia’s Prime Minister Robert Fico, who has previously been more sympathetic to Russia, lifted his objections after receiving what he referred to as “assurances” from the EU regarding gas prices, as the bloc aims to eliminate Russian gas imports by 2027.

Among the newly implemented measures, EU diplomats announced that the bloc has agreed to set the price cap on Russian oil exports to non-EU countries at 15% below global market rates, reduced from the $60-per-barrel cap established by the G7 in 2022. The new EU price point will begin at $47.60, subject to adjustment based on market changes.

This price cap, stemming from a G7 initiative, prohibits shipping and insurance companies from handling Russian oil transactions above the defined limit. Reports indicate that EU allies were unable to persuade U.S. President Donald Trump to support this lower cap, although the UK and Canada are anticipated to align with the decision.

The sanctions package also includes the blacklisting of over 100 tankers from Russia’s “shadow fleet,” which is used to circumvent oil export limitations. Additional measures target a Russian-owned refinery in India and two Chinese banks believed to be assisting Moscow in avoiding sanctions.

Moreover, the EU will impose bans on transactions with more Russian banks and broaden restrictions on the export of “dual-use” goods that could have military applications. New steps will also be taken to prevent the non-functioning Nord Stream 1 and 2 gas pipelines in the Baltic Sea from resuming operations.

Kremlin spokesperson Dmitry Peskov commented that Moscow would “review the latest sanctions package to mitigate its effects.”

“However, each new round of sanctions exacerbates the negative impact on the very nations that participate in them,” he remarked to reporters. “We have already built a form of resilience against sanctions and have adapted to living under them.”

EU ministers are expected to formally implement these new sanctions later on Friday.