Key points
- EU has approved one of its strongest sanctions packages against Russia to date: Kallas
- New sanctions will be formally adopted by EU ministers later on Friday
- Each sanction weakens Russia’s ability to wage war: Kallas
ISLAMABAD: EU countries on Friday signed off on a new package of sanctions on Russia over the war in Ukraine, including lowering a price cap on Moscow’s oil exports.
The 18th round of economic punishment against Russia since its 2022 invasion was approved after Slovakia dropped a weeks-long block following talks with Brussels over separate plans to phase out Russian gas imports, according to AFP.
“The EU just approved one of its strongest sanctions packages against Russia to date,” EU foreign policy chief Kaja Kallas said.
We are standing firm.
The EU just approved one of its strongest sanctions package against Russia to date.
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. (1/3)
— Kaja Kallas (@kajakallas) July 18, 2025
“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.”
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. (2/3)
— Kaja Kallas (@kajakallas) July 18, 2025
Slovakia’s Russia-friendly leader Robert Fico dropped his opposition after getting what he called “guarantees” from Brussels over gas prices as the bloc pushes to cut off Russian imports by the end of 2027.
Price cap on Russian oil
As part of the new sanctions designed to sap Russia’s war chest, diplomats said the EU has agreed to lower its price cap on Russian oil exported to third countries around the world to 15 per cent below market value.
That comes despite EU allies failing to convince US President Donald Trump to go along with the plan.
The cap is a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries across the globe such as China and India.
The oil price cap, set at $60 by the G7 in 2022, is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount.
Under the new EU scheme — which is expected to get the backing of G7 allies like Britain and Canada — the new level will start off at $47.6 and can be adjusted as oil prices change in the future.
Blacklisting over 100 more vessels
In addition, officials said the EU is blacklisting over 100 more vessels in the “shadow fleet” of ageing tankers used by Russia to circumvent oil export curbs.
There are also measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online.
Among other targets, sanctions will be placed on a Russian-owned oil refinery in India and two Chinese banks as the EU seeks to curb Moscow’s ties with international partners.
For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India.
Our sanctions also hit those indoctrinating Ukrainian children.
We will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow. (3/3)
— Kaja Kallas (@kajakallas) July 18, 2025
There is also an expanded transaction ban on dealings with Russian banks and more restrictions on the export of “dual-use” goods that could be used on the battlefield in Ukraine.
The new sanctions will be formally adopted by EU ministers later on Friday, AFP reported.
Russia captures Ukrainian villages
Meanwhile, Russia continued to capture Ukrainian villages, according to Al Jazeera.
On Friday, the Russian Ministry of Defence claimed to have seized Zelyonaya Dolina in the eastern region of Donetsk and Sobolevka in Kharkiv in the northeast. Nikolayevka in Donetsk fell on Sunday, Malinovka in Zaporizhia on Monday and Novokhatskoye in Donetsk on Wednesday.
Yet even at this accelerated rate of 15sq km (6sq miles) a day, Russia would need 89 years to capture the rest of Ukraine, The Economist magazine estimated.
