The European Commission has formally presented its 18th package of sanctions against the Russian Federation, intensifying economic pressure on Moscow over its continued military aggression in Ukraine.
The measures target key revenue streams derived from the energy sector, broaden financial restrictions, and seek to disrupt procurement for the Russian military-industrial base.
Commission President Ursula von der Leyen and High Representative Kaja Kallas announced the package during a joint press conference in Brussels on Tuesday. Von der Leyen stated that the measures were designed to close loopholes, curtail circumvention, and reinforce existing restrictions.
“Russia’s goal is not peace. It is to impose the rule of might,” Von der Leyen said. “Strength is the only language that Russia will understand.”
Key Elements of the Proposal
The latest package includes a transaction ban on 22 additional Russian banks, significantly expanding the scope of financial restrictions. These institutions were already subject to previous measures, including exclusion from the SWIFT international payments system, but will now face a full prohibition on financial dealings with EU entities. The proposal also targets banks in third countries found to be facilitating sanctions evasion.
The Russian Direct Investment Fund (RDIF), its subsidiaries, and associated networks are also listed. RDIF head Kirill Dmitriev criticised the move, claiming that the Commission’s position reflected “the EU’s desire to prolong the conflict in Ukraine” and asserting that the fund had supported European companies still operating in Russia.
In the energy sector, the Commission has proposed a significant reduction in the Group of Seven (G7) price cap on Russian seaborne crude oil — from the current level of $60 per barrel to $45. This adjustment, aimed at constraining Russian export earnings, will be discussed at the upcoming G7 summit in Canada. “We started this measure as G7. It was successful and I want to continue it as G7,” von der Leyen remarked.
Ukrainian President Volodymyr Zelenskyy welcomed the proposal but argued that the oil price ceiling should be lowered further. In a video address, he called for a cap of $30 per barrel, stating that such a threshold would constitute “real pressure on Russia”. He further urged that the Russian tanker fleet and oil production technologies be targeted more comprehensively.
Maritime and Trade Measures
The Commission is also seeking to disrupt the so-called “shadow fleet” of oil tankers that transport Russian crude while avoiding detection. The proposal adds further vessels to the EU’s blacklist, bringing the total number of targeted ships to over 400. These vessels would be denied access to EU ports and maritime services.
In parallel, the package includes a ban on the import of refined petroleum products produced using Russian crude oil. The measure is intended to prevent indirect re-entry of sanctioned oil products into the EU market via third-country refineries.
Von der Leyen explained: “We want to prevent that some of the Russian crude oil reaches the EU market through the back door.”
Pipeline Infrastructure
A full ban on transactions related to the Nord Stream 1 and 2 gas pipelines has also been proposed. While neither pipeline is currently operational following the 2022 explosions in the Baltic Sea, the Commission’s measure is aimed at forestalling any future use of the infrastructure for circumventing sanctions or monetisation.
Legislative Path Ahead
The proposed sanctions must be adopted unanimously by the 27 EU Member States. Discussions at the Council level are expected to begin this week. Previous packages have faced delays due to differing national positions, particularly regarding energy and financial exemptions.
If approved, this 18th sanctions package would reinforce the EU’s long-term strategy of constraining Russia’s economic capacity to finance its war effort. The proposals align with coordinated measures under discussion among G7 partners, particularly concerning the oil price cap and maritime enforcement.
The European Commission has stated that the full text of the proposed regulations, including annexes listing newly designated entities and vessels, will be published following Council agreement.
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