EU Imposes New Sanctions on Russia, Targeting Oil, Pipelines, and Shadow Fleet Over Ukraine War

The European Union has introduced a tough new set of sanctions against Russia in response to its ongoing war in Ukraine. These new measures include lowering the oil price cap, banning financial transactions related to the Nord Stream gas pipelines, and targeting more ships in Russia’s shadow fleet.

According to EU the head of EU foreign policy Kaja Kallas this action conveys a clear message: “Europe will not back down from its commitment to Ukraine. The EU will continue to increase pressure until Russia ceases its conflict.” The EU foreign policy chief described this series of measures as being one of the most comprehensive packages that the EU has put in place so far in relation to the war, which is now entering its fourth year.

The newly-appointed Ukrainian Premier Minister Yulia Svyrydenko praised the European Union’s decision to approve the 18th sanction package for Russia

. She emphasized that these actions increase pressure in key areas and said on X that further steps are still needed to help move closer to peace.

French president Emmanuel Macron said he had talked to Ukrainian president Volodymyr Zelenskyy. He also welcomed European sanctions. In a blog post on X the internet, he wrote “The Russian attacks must stop immediately. France is, and will always be on Ukraine’s side.” German Minister of Finance Friedrich Merz also supported the move, pointing out that the EU continues to exert pressuring Moscow. “It’s good that we in the EU have now agreed on the 18th sanctions package against Russia,” the Russian leader wrote on X. “It is a threat to energy, banks, and the military sector. This makes it more difficult for Russia to finance the conflict against Ukraine.”

On the other hand, Kremlin spokesperson Dmitry Peskov responded on Friday by saying that Russia has developed immunity to Western sanctions and adapted over time. He labeled the restrictions illegal and added that every new round of sanctions brings negative consequences for the countries enforcing them.

This latest EU action coincides with growing military support from European countries for Ukraine, including purchases of U.S. weapons to strengthen Ukraine’s defense.

U.S. President Donald Trump also announced a new weapons deal for Ukraine earlier this week and warned that Russia would face heavy tariffs unless a peace agreement is reached within 50 days.

The European Commission, the EU’s executive arm, proposed lowering the oil price cap from $60 to $45 per barrel. This reduced cap, below current market prices, is designed to undercut Russia’s vast energy revenues. The EU had hoped to bring the Group of Seven nations on board with the plan to extend its impact. However, rising oil prices due to conflict in the Middle East and hesitation from the U.S. stalled those efforts.

While Ukraine’s Western allies capped Russian oil prices at $60 per barrel in 2023, the measure had limited effect since much of Russia’s crude was already selling for less than that. Still, the cap was intended as a safeguard in case prices rose again.

Oil remains Russia’s main economic pillar. It funds President Vladimir Putin’s military without causing major inflation or a currency crash at home. That’s why the EU is now also cracking down on the Nord Stream gas pipelines between Russia and Germany. Though no longer in operation, these pipelines could be revived in the future, so the EU wants to block any potential for Russia to profit from them again. This includes discouraging future investments. Sanctions also targeted Rosneft’s refinery in India.

Built to carry Russian gas to Germany, the Nord Stream pipelines were heavily damaged by sabotage in 2022. The identity of those responsible for the underwater blasts remains unknown.

The new sanctions also hit Russia’s financial sector. They limit the Kremlin’s ability to raise funds or conduct international transactions. Notably, two Chinese banks have also been added to the sanctions list.

Since Russian President Vladimir Putin launched the full-scale invasion of Ukraine on February 24, 2022, the EU has passed multiple rounds of sanctions. But with each new package, reaching agreement among all 27 EU member states becomes more difficult. The measures are starting to impact their own economies.

For example, Slovakia delayed the latest sanctions due to its concerns over a proposed stop to Russian gas imports, which it still depends on.