The 18th EU sanctions package: what it includes
18 July 2025 12:10
On Friday, July 18, the European Union officially approved the 18th package of sanctions against Russia. The decision was made possible only after Slovak Prime Minister Robert Fico lifted his veto, which he had held for several weeks, "Komersant Ukrainian" reports, citing Euronews.
EU High Representative for Foreign Affairs and Security Policy Kaja Kallas called the package one of the most powerful in the entire period of sanctions policy against Russia.
The main obstacle to the approval of the sanctions was previously the position of Slovakia, which used its veto power not because of disagreement with the sanctions themselves, but because of its protest against the EU’s proposed plan to completely abandon Russian fossil fuels by the end of 2027. Slovakia insisted that such a plan would raise prices for consumers, weaken competitiveness, and threaten energy security.
Fico demanded financial compensation, warning of a possible lawsuit from Gazprom worth 16 to 20 billion euros due to the early termination of the contract, which runs until 2034. However, after intense negotiations with Brussels and the intervention of German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk, Fico announced on Thursday evening that he would lift his veto, saying that further blocking the sanctions package would be “counterproductive.”
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Details of the new sanctions package
Financial sector
The new sanctions package bans all transactions with 22 Russian banks, including the Russian Direct Investment Fund and its subsidiaries. These measures are aimed at limiting Russia’s access to the international financial system as much as possible.
Energy sector
The package includes the following changes in the energy sector:
- Ban on the Nord Stream gas pipeline. The EU has banned direct and indirect use of the Nord Stream subsea gas pipelines, which are currently closed, but Moscow plans to reopen them in the future.
- Dynamic oil price ceiling. The most important innovation was the transformation of the fixed price limit for Russian oil from $60 per barrel to a dynamic mechanism. The new limit will be 15% below the average market price and will be automatically adjusted every six months. The starting point is set at $47.6 per barrel.
- Petroleum products ban. The EU closed a well-known loophole by banning imports of petroleum products made from Russian oil and sold under other brands. This applies mainly to products from India and Turkey.
“Shadow fleet”
The sanctions affected 105 additional vessels from the so-called “shadow fleet” – outdated tankers that Moscow uses to circumvent the price cap. These vessels are banned from accessing EU ports and the services of European companies. In total, more than 400 vessels are now on the shadow fleet blacklist.
Intermediary companies
The package also includes restrictions against 11 companies outside Russia accused of facilitating the circumvention of sanctions. Among them are four companies from mainland China and three from Hong Kong.
International context
It is worth noting that the United States, which had previously been the main supporter of the G7 price cap, did not support its reduction. However, the UK’s participation was critical for the EU due to its dominant position in the marine insurance industry.
This package of sanctions comes as US President Donald Trump’ s rhetoric against Vladimir Putin intensifies, including promises to provide lethal aid to Ukraine and impose “severe tariffs” on Russia.
Previous EU sanctions against Russia
The European Union has previously imposed 17 sanctions packages against Russia in response to its aggression against Ukraine. The sanctions cover a wide range of measures aimed at weakening the Russian economy and limiting Russia’s ability to wage war.
Key sanctions include freezing the assets of Russian officials, including President Putin, restricting Russia’s access to EU financial markets, a ban on imports of Russian energy (coal, oil), and restrictions on exports of dual-use technologies and goods that could contribute to Russia’s military capabilities.
The EU also imposed sanctions against Russian banks, excluding some of them from the SWIFT system, banned Russian ships and trucks from accessing EU ports and territory, and restricted the activities of Russian media in the Union. In addition, restrictions were imposed on investments in the Russian energy sector and a ban on the export of luxury goods to Russia.
The sanctions also target individuals and organizations involved in the aggression against Ukraine, including politicians, military, businessmen and propagandists. The EU regularly expands its sanctions lists, adding new names and tightening existing restrictions.
Some sanctions packages are aimed at combating sanctions circumvention, strengthening export and import controls, and restricting Russia’s access to technologies and goods that could be used for military purposes.
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