The European Union’s 18th sanctions package, adopted on July 18, 2025, marks another important step in systematically increasing economic pressure on Russia. The main goal is to limit Russia’s energy revenues and further restrict access to global finance.
A significant innovation is the introduction of a floating price cap for Russian oil: the limit is now set 15% below the trailing three-month average crude price. The starting cap is $47.60, making the new system more responsive to market changes.
Technological and financial restrictions have also been significantly expanded. For the first time, two major Chinese banks are included in the sanctions list, along with dozens of Russian and foreign companies that have helped circumvent earlier bans. More ships in the "shadow fleet" are now barred from EU ports and logistic services.
The EU targets circumvention in energy trade as well: imports of refined products made from Russian crude in third countries are banned. Special restrictions now apply to the Nord Stream 1 and 2 pipelines—any operations related to these pipelines are prohibited.
There is particular focus on export restrictions for dual-use and military-related technologies. The sanctions list now includes 22 new companies from Russia, China, and Belarus, involved in supplying equipment for Russia’s military-industrial complex.
Economic effects include worsening budget deficits in Russia, rising inflation, and increased costs for technological imports. Trade with the EU has nearly ceased, and oil revenues are steadily declining. Chronic resource shortages and isolation deepen Russia’s economic challenges.
Sanctions don’t have an immediate effect but steadily weaken Russia’s economy and war capacity. The EU intends to keep adapting its strategy, maintaining support for Ukraine and strengthening its position in global politics.
