Official: EU approved 18th package of sanctions against Russia and named affected sectors

The Council of the European Union has officially confirmed the approval of the 18th package of EU sanctions against the Russian Federation, listing what was included, writes UNN.

Today, the Council (EU) adopted the 18th package of economic and individual restrictive measures that severely impact Russia’s energy, banking, and military sectors, as well as trade with the EU, and ensure accountability for Russia’s continued aggression against Ukraine. In addition, the Council (EU) supplemented the package by agreeing on further measures regarding Belarus.

As stated, the EU Council approved a significant list of 55 entities, which “includes 14 individuals and 41 legal entities responsible for actions undermining or threatening the territorial integrity, sovereignty, and independence of Ukraine.” Thus, the total number exceeded 2500.

New oil price cap, de-SWIFTing, shadow fleet, Nord Stream and Chinese banks: what’s in the new EU sanctions package against Russia18.07.25, 11:28 • 55596 views

EnergyWith today’s package, the EU limits Russia’s energy revenues through a number of different measures.

The EU lowers the oil price cap from 60 to 47.6 dollars per barrel to align it with current global oil prices, and introduces an automatic and dynamic mechanism for adjusting the oil price cap and ensuring its effectiveness.

Oil exports still account for a third of the Russian government’s revenues, the European institution reminded.

The EU is also imposing additional sanctions across the entire value chain of the “shadow fleet.” “Another 105 vessels will be denied access to ports and the provision of a wide range of services related to maritime transport, bringing the total number of sanctioned vessels to 444,” the statement said.

“Full-scale sanctions (asset freezes, travel bans, prohibitions on providing resources) are directed against Russian and international companies that manage ‘shadow fleet’ vessels, traders of Russian crude oil, and a large client of the shadow fleet – an oil refinery in India, whose main shareholder is “Rosneft.” For the first time, the EU also includes a list of the captain of a ‘shadow fleet’ vessel, as well as a private operator of an international flag registry. Finally, today’s lists include one company from the Russian LNG sector,” the statement says.

In addition, the EU is introducing a ban on the import of petroleum products produced from Russian crude oil coming from any third countries, with the exception of Canada, Norway, Switzerland, the United Kingdom, and the United States, thereby preventing Russian crude oil from entering the EU market through the “back door.”

The EU is also imposing a complete ban on transactions related to “Nord Stream 1” and “Nord Stream 2,” including the supply of goods or services that impede the completion of construction, maintenance, operation, and any future use of the “Nord Stream 1” and “Nord Stream 2” pipelines.

The EU Council also decided to “cancel the exception for oil imports from Russia to the Czech Republic.”

BankingThe EU is tightening the ban on providing specialized financial messaging services based in the EU to some Russian banks to a complete ban on transactions. This will apply to 22 additional Russian banks in addition to the 23 banks already subject to the ban.

The EU is lowering the threshold for sanctions against third-country financial and credit institutions and crypto-asset service providers that disrupt sanction measures against Russia, support Russia’s aggressive war, or are associated with the Financial Messaging System (SPFS), a Russian alternative financial messaging service developed by the Central Bank of Russia and used to protect Russian banks from the impact of EU sanctions.

The EU is also expanding the transaction ban for such financial and credit institutions and crypto-asset service providers. The transaction ban has also been extended to third-country operators who circumvent oil-related bans.

In addition, a ban is introduced on any transactions with the Russian Direct Investment Fund (RDIF), its sub-funds, and companies. The EU Council has developed a tool to extend such a ban to certain companies in which RDIF has invested, as well as to organizations that provide investment or other financial services to RDIF itself. Such companies and financial institutions will be selected by the EU Council; four Russian organizations in which RDIF has invested are already included in the list. This measure further restricts Russia’s access to global financial markets and foreign currency.

The EU Council also introduces a new ban on the sale, supply, transfer, and export of software management systems and software intended for specific purposes in the banking and financial sector.

Military industryTo limit Russia’s military potential, the EU Council is imposing further full-scale sanctions against suppliers to the Russian military-industrial complex, including three companies based in China that sell goods used on the battlefield. These measures aim to further restrict Russia’s access to goods and technologies. In addition, the package covers eight companies operating in the Belarusian military-industrial complex, which supports Russia’s military efforts.

26 new companies will be subject to stricter export restrictions on dual-use goods and technologies, including those that can contribute to the technological enhancement of Russia’s defense and security sector. 11 of these companies are located in third countries, excluding Russia (seven in China and Hong Kong, and four in Turkey), and have been involved in circumventing export restrictions, particularly on unmanned aerial vehicles (UAVs).

In addition, the EU has agreed on further export bans worth over 2.5 billion euros. The list of such goods that contribute to the technological enhancement of the Russian defense and security sector will now include goods for the development and production of Russian military systems, such as numerical control (NC) machine tools and component chemicals for fuel. In addition, the existing ban on transit through Russian territory is expanded to cover certain economically important goods used for construction and transport.

ResponsibilityThe Council is imposing sanctions against another person actively involved in Russia’s “military education” of Ukrainian children. This brings the total number of sanctioned entities related to the deportation and ideological processing of Ukrainian children to over 90. The package also lists several Russian intermediaries in the occupied territories, including a person responsible for manipulating Ukrainian cultural heritage, another leading Russian businessman, and a well-known Russian propagandist.

BelarusIn addition to 8 new entities associated with the Belarusian military complex, today’s package also further reflects measures introduced regarding Belarusian trade, those introduced regarding Russia.

In addition, the ban on specialized financial messaging services is being converted into a complete transaction ban, and an arms import embargo from Belarus is also being introduced.

OtherThe EU is also introducing measures to protect member states of the bloc from illegal arbitration proceedings under bilateral investment treaties (BITs) initiated by Russian companies and individuals, including oligarchs and their representatives.

“The relevant legal acts will soon be published in the Official Journal of the EU,” the EU Council noted.

Zelenskyy on the 18th EU sanctions package against Russia: Ukraine is preparing synchronization and new restrictions18.07.25, 11:42 • 4846 views