Update – July 18, 2025
Following the European Commission's June 10 unveiling of the 18th sanctions package, the EU Council officially adopted the measures on July 18, 2025, confirming most of the original proposals, with some notable changes and new additions:
- The oil price cap was adjusted to $47.6 per barrel, slightly higher than the initial $45 proposed, with a dynamic adjustment mechanism added to adapt the cap to market fluctuations.
- The shadow fleet crackdown was expanded, adding 105 more tankers, bringing the total to 444 tankers blacklisted, strengthening enforcement of sanctions on Russian oil shipments.
- Refined products made from Russian crude oil, routed through third countries, remain banned, with minor adjustments to exemptions for specific regions (e.g., Canada, Norway, Switzerland, UK, US).
- The ban on Nord Stream 1 & 2 pipelines was fully implemented, extending to all related transactions, including maintenance and services.
Additionally, the July 18 package introduced:
- New sanctions on Belarus, targeting 8 Belarusian military-industrial entities, aligning with Russia’s sanctions.
- Human rights accountability measures, including sanctions on individuals involved in the deportation and indoctrination of Ukrainian children, underscoring the EU's focus on protecting Ukrainian sovereignty.
These actions reflect the EU's continued resolve to weaken Russia’s war machine, support Ukraine's sovereignty, and expand its reach to Belarus.
Full update can be found at: European Commission Update
June 10, 2025
On June 10, 2025, the European Commission, led by Ursula von der Leyen and High Representative Kaja Kallas, unveiled the 18th sanctions package—a broad set of measures targeting Russia's energy revenues, financial sector, defense industry, and supply chains. The package aims to cut off funding for Russia’s war efforts by reducing energy income, isolating financial channels, and disrupting military manufacturing.
EU officials continue to stress the importance of sanction “accumulation”: after the 17th round, oil exports via targeted routes dropped by approximately 30%.
Summary of key sanctions:
Energy
- Ban on all direct or indirect transactions involving Nord Stream 1 and 2 pipelines.
- Oil price cap reduced from $60 to $45 per barrel to curb Russia’s oil revenue.
- Import ban on refined products made from Russian crude oil routed through third countries.
- Expansion of the shadow fleet blacklist, adding 77 oil tankers to prevent sanctions evasion.
Financial Sector
- Transaction bans extended to 22 additional Russian banks, including those using SWIFT and operators based in third countries.
- New restrictions imposed on the Russian Direct Investment Fund and related investment vehicles.
Military-Industrial and Technology Controls
- A €2.5 billion export ban on machinery, metals, plastics, chemicals, and dual-use technologies critical to weapons and drone production.
Staying Ahead of Sanctions Compliance
Each new EU sanctions package adds complexity for global trade professionals. For businesses connected to high-risk sectors or regions, keeping compliance frameworks current is essential.
CATTS can help you stay compliant, reduce risk, and adapt with confidence. Send us a message if you’d like to explore how these changes may affect your operations.
Source: European External Action Service