EUs Robust Sanctions Package: A New Blow to Russias Oil Exports

On Friday, European Union nations approved a fresh set of sanctions against Russia due to its ongoing military actions in Ukraine, which includes a reduction in the price cap on Russian oil exports worldwide.

This marks the 18th set of sanctions since the invasion in 2022 and was finalized after Slovakia lifted a prolonged blockade, following discussions with Brussels regarding separate strategies for phasing out Russian gas imports.

“The EU has just authorized one of its most robust sanctions packages against Russia to date,” stated Kaja Kallas, the EU’s foreign policy chief. “Every sanction diminishes Russia’s capacity to continue its war. The message is unequivocal: Europe will steadfastly support Ukraine.”

Slovakia’s pro-Russian Prime Minister Robert Fico reversed his objections after receiving what he described as “assurances” from the EU regarding gas prices, as the bloc aims to completely phase out Russian gas imports by 2027.

Under the new measures, EU diplomats announced that the bloc has decided to lower the price cap on Russian oil sold to non-partner countries to 15% below the global market price, down from the $60-per-barrel cap previously imposed by the G7 in 2022. The new EU benchmark will initiate at $47.60 and will be adjusted according to market changes.

The price cap, initiated by the G7, prohibits shipping and insurance companies from handling Russian oil sales that exceed the set limit. It was reported that U.S. President Donald Trump was not swayed by EU allies to support the reduced cap, while Britain and Canada are anticipated to endorse the change.

This sanctions package also includes a blacklist of over 100 tankers from Russia’s «shadow fleet,» utilized to circumvent oil export regulations. Additional penalties are aimed at a Russian-owned refinery in India, as well as two Chinese banks accused of aiding Moscow in avoiding sanctions.

The EU will impose bans on financial transactions with more Russian banks and enhance restrictions on the export of “dual-use” items that could have military uses. New measures are also being put in place to prevent the defunct Nord Stream 1 and 2 gas pipelines in the Baltic Sea from being reactivated.

Kremlin spokesperson Dmitry Peskov later commented that Moscow would “assess the new sanctions package to mitigate its effects.”

“However, each new package creates additional negative consequences for the countries that participate in such measures,” he told journalists. “We have already developed a certain resilience to sanctions. We have adapted to living under sanctions.”

EU ministers are anticipated to formally ratify the new sanctions later on Friday.