EU Proposes 18th Sanctions Package Against Russia

Key elements of the 18th sanctions package

1. Tighter energy and oil sanctions

A striking new measure is the proposed ban on transactions via the Nord Stream 1 and 2 pipelines. The EU aims to prevent Russia from generating future revenues through this route. Additionally, the price cap on Russian crude oil will be lowered from USD 60 to USD 45 per barrel, aligning with the G7 strategy. This reduction is intended to further limit Russian state income from oil exports.

2. Financial sector: expanded transaction bans

Building on the earlier SWIFT ban, the Commission now proposes a full ban on financial transactions with a broader group of Russian banks. An additional 22 banks will be added to the list of sanctioned financial institutions. A notable new element is the plan to extend this ban to financial service providers in third countries that facilitate Russian trade and help circumvent existing sanctions.

3. Tackling the shadow fleet and oil rerouting

In addition to the 342 vessels already sanctioned, the Commission wants to target a further 77 tankers linked to the so-called "shadow fleet". These vessels are used to transport oil through unofficial channels, often under false flags or with manipulated tracking data. The package also proposes a ban on the import of refined products made from Russian oil – even when exported via third countries such as Turkey or India.

4. Expanded export restrictions

The package includes an extension of the list of prohibited export goods, with an estimated total value of EUR 2.5 billion. These are once again strategically sensitive items and technologies that could strengthen Russia’s military capabilities. The EU will further restrict exports of dual-use goods, as well as technologies that could be used in the production of drones, missiles, and weapons systems.

5. Extended sanctions list

Finally, an additional 22 Russian and foreign companies – including entities based in China and Belarus – will be added to the sanctions list due to their direct or indirect support of Russia’s war efforts.

What’s next?

As noted, the 18th sanctions package is currently still a proposal. Before it can come into force, it must be unanimously approved by all 27 Member States. At present, Slovakia and Hungary have indicated that they are not yet willing to agree, citing concerns over the energy and oil-related measures. However, the pace of adoption of previous packages suggests it is likely this one will also be adopted in the near term.

What does this mean for your organisation?

The 18th sanctions package once again highlights that compliance with sanctions legislation is not static, but a continuous process. Would you like to understand what this new package may mean for your company in practical terms? Or would you like to check whether your organisation remains fully compliant under the current sanctions regime? If so, please contact Jikke Biermasz or Zoë Poortvliet.