The European Union approved a new series of sanctions against Russia on Friday in response to its ongoing war in Ukraine. The measures include a lower oil price cap, a ban on transactions involving the Nord Stream gas pipelines, and fresh restrictions targeting Russia’s “shadow fleet” of tankers, according to the EU’s foreign policy chief.
“The message is clear: Europe will not retreat in its support for Ukraine,” according to Kaja Kallas, the EU’s foreign policy chief.
Kallas described the latest sanctions package as “one of the EU’s strongest yet” since the conflict began, now entering its fourth year.
The move coincides with European countries stepping up purchases of American-made weapons to bolster Ukraine’s defence capabilities.
France’s foreign minister Jean-Noel Barrot called the latest moves “unprecedented” and said that “”together with the United States we will force (Russian President) Vladimir Putin into a ceasefire”.
Ukrainian President Volodymyr Zelensky welcomed the measures, calling them “timely and necessary” amid sustained Russian offensives.
“All infrastructure that fuels Russia’s war must be blocked,” he said, adding that Ukraine would align its own sanctions with the EU’s and introduce additional restrictions shortly.
A key provision of the new package is a revised oil price cap. The European Commission had proposed lowering the limit from $60 to $45 per barrel to reduce Russia’s energy revenues, though EU member states ultimately agreed on a cap just under $48, still below market price.
Oil income remains a cornerstone of Russia’s economy, helping the Kremlin to fund its military without triggering widespread inflation or a currency crash.
The EU had hoped to coordinate the price cap with other G7 nations to strengthen its impact, but rising oil prices due to tensions in the Middle East, along with a lack of support from the Trump administration in Washington, hampered these efforts.
Although an oil price ceiling of $60 was introduced in 2023, it was largely symbolic, as most Russian crude traded below that threshold. Nonetheless, it was seen as a safeguard in the event of price spikes.
North Stream
To close existing loopholes, the EU has also introduced a fresh import ban aimed at stopping Russia from indirectly exporting crude oil via third countries. Additionally, sanctions have been extended to the Nord Stream pipelines between Russia and Germany— currently inactive following sabotage in 2022 —in a move intended to deter future revenue generation or investment.
Sweden confirms Nord Stream pipeline explosions were sabotage
Russia’s state-run energy company Rosneft and its refinery operations in India have also been targeted.
Financial sanctions were strengthened as well, with new restrictions imposed on Russia’s banking sector to further restrict its ability to raise funds or carry out international transactions.
Two Chinese banks were added to the list of sanctioned institutions.
This latest package adds to a growing list of EU measures since Russia launched its full-scale invasion on 24 February 2022. Over 2,400 individuals and entities, ranging from officials and ministries to financial institutions and state-linked companiesm, have faced asset freezes and travel bans.
However, achieving consensus among all 27 EU members has become increasingly difficult, particularly as the sanctions begin to impact their own economies.
Slovakia delayed approval of the latest package due to concerns over halting Russian gas imports, upon which it remains heavily dependent.
The previous round of sanctions, introduced on 20 May, targeted nearly 200 vessels in Russia’s shadow fleet. Friday’s additions saw a further 105 tankers banned from European ports and ship-to-ship transfer operations, bringing the total number of blocked vessels to over 400.
(With newswires)
