The European Commission has announced the adoption of the 18th sanctions package against Russia by the European Council.
The measures aim to increase pressure on Russia and support the EU’s objective of securing a just and lasting peace in Ukraine.
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The new sanctions encompass five main areas: reducing Russia’s energy income; targeting the banking sector; weakening the military-industrial complex; enhancing measures to prevent circumvention; and holding Russia accountable for its actions against Ukrainian children and cultural heritage.
With the implementation of this package, the EU has listed a total of 444 vessels in Russia’s shadow fleet and more than 2,500 individuals.
The energy-related measures of the 18th package include a reduction of the oil price cap for crude oil from $60 to $47.6, and the establishment of an automatic mechanism for future adjustments.
This system ensures the cap remains 15% below the average market price for Urals crude, exerting continuous downward pressure on Russian energy revenues.
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By GlobalDataThe sanctions also prohibit any EU operator from engaging in transactions related to the Nord Stream 1 and 2 pipelines and ban the import of refined oil products derived from Russian crude, even if processed abroad.
Commissioner for Financial Services and the Savings and Investments Union Maria Luís Albuquerque said: “This new sanctions package strikes at the heart of Russia’s war machine – targeting its energy revenues, financial sector and military-industrial complex.
“The EU stands united in its unwavering support for Ukraine. The pressure is working – Russia’s resources are dwindling, and sustaining its illegal war is becoming increasingly difficult. Unequivocal support for Ukraine is, and will remain, at the very top of our EU list of strategic priorities.”
The EU has also added 105 vessels to its vessel listings, bringing the total to 444.
Listed vessels are barred from EU ports and services, and the EU is also further engaging with flag states to prevent these tankers from sailing under their flags.
The sanctions extend to entities and individuals involved in the shadow fleet’s operations, including Russian and international companies, crude oil traders and a major refinery in India with Rosneft as a significant shareholder.
High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission Kaja Kallas said: “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.”
Furthermore, to protect member states from arbitration, the EU has also introduced restrictions concerning the investor-to-state dispute settlement (ISDS).
These measures mitigate the risk of economic damage from investment arbitrations related to EU sanctions and will possibly allow member states to recover damages from such proceedings.
Last week, Slovakia announced that it would no longer obstruct the ratification of the EU’s 18th package of sanctions against Russia.
Slovakia had repeatedly blocked sanctions, seeking guarantees to mitigate any adverse effects associated with the EU’s objective to halt Russian gas imports by the year 2028.
