EU Rolls Out Toughest Oil Sanctions Yet On Russia In 18th Round

Brent crude futures rose earlier after the European Union approved its 18th round of sanctions against Russia over the war in Ukraine. However, with a multi-year track record of Western sanctions—and repeated predictions by their leaders that Moscow would collapse due to lost oil revenue—the question now is: What makes this package so different this time around? 

EU foreign policy chief Kaja Kallas revealed the new sanctions package on Russia in a post on X, describing it as “one of the strongest sanctions packages against Russia to date.” 

According to Reuters, the new sanctions package will lower the G7′s price cap for purchasing Russian crude oil to $47.60 per barrel. The current cap is $60, making this a significant discount. Bloomberg reported that the new cap will range between $45 and $50, and will be automatically revised twice a year based on market prices. 

The sanctions package didn’t stop with a revision to the crude oil price cap—in fact, it’s broader, targeting everything from Russia’s shadow tanker fleet to the Nord Stream pipeline to refineries in India. 

Here are the key highlights from the new sanctions package, as outlined in a series of posts by Kaja Kallas on X: 

• We’re cutting the Kremlin’s war budget further, going after 105 more shadow fleet ships, their enablers, and limiting Russian banks’ access to funding. 

• Nord Stream pipelines will be banned.

• A lower oil price cap.

• We are putting more pressure on Russia’s military industry, Chinese banks that enables sanctions evasion, and blocking tech exports used in drones.

• For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India.

The 18th round of sanctions comes as Russia has continued to sell most of its crude oil and petroleum products at prices above the previous cap, relying on a vast shadow fleet of tankers operating worldwide. Brussels has tried 17 times to bring Moscow to its knees—yet Europeans insist this time will be different...

In markets, Brent crude rose modestly on the news, climbing above the $70-per-barrel mark. 

Separately, President Trump has threatened Russia with secondary tariffs of up to 100% on countries that continue trading with Moscow, aiming to force President Vladimir Putin to the negotiating table and end Russia’s grinding three-year invasion of Ukraine.