The European Union has announced its 18th sanctions package against Russia lowering the oil price cap from 60 dollars to 45 dollars per barrel and blacklisting 77 more ships in Moscow’s “shadow fleet.” EU Commission President Ursula von der Leyen said the new measures aim to pressure Russia into a real cease-fire in Ukraine. The package also hits Russian banks and the energy sector, including its military industry.
The proposal adds another 77 vessels transporting Russian oil to the list, which would bring the total to over 400. When sanctioned, Russia’s shadow fleet tankers cannot dock in ports and Russia has to find new vessels.
“This costs them more and runs down their profits,” the European Commission high representative/vice-president Kallas commented.
The new package, the 18th since Russia launched its full-scale invasion against its neighbor in 2022, is designed to further target the Kremlin’s ability to make money from its oil production.
Explaining why the EU has targeted Russia’s energy sector, the Commission chief said oil exports still represent one third of Russia’s government revenues.
“To better enforce the cap, on top of the 342 vessels already listed, we list today additional 77 vessels that are part of the Russian shadow fleet. These vessels are a means to evade sanctions. With our listings, we severely constrain Russia’s options to export its oil through a shadow fleet,” President von der Leyen added.
The bloc also wants to harden sanctions on Russia’s energy sector.
Von der Leyen said on Tuesday that the oil price cap needs lowering from 60 dollars to 45 dollars per barrel because global oil prices had fallen since the cap was first introduced in 2023 and now trade “very close” to the cap level. “By lowering the cap, we adapt it to changed market conditions and restore its effectiveness.”
The cap prohibits Western companies from providing shipping, insurance and other services needed to export the fuel unless it is priced below the threshold.
As part of its 18th round of sanctions, the EU also proposed measures to stop any EU operator from engaging directly or indirectly in any transactions regarding the Nord Stream pipelines.
Additionally, the EU introduces a ban on the import of refined products based on Russian crude oil. “In this way, we want to prevent that some of the Russian crude oil reaches the EU market through the back door,” the EU president highlighted.
According to the Commission chief, Russia’s oil and gas revenues have fallen by almost 80% compared to before the war. As the chief notes, the country’s deficit is skyrocketing, interest rates are prohibitively high and inflation is on the rise, well above 10%.
Meanwhile, the Commission wants to harden sanctions on Russia’s banking sector and to include also new measures against 22 Russian and foreign companies providing direct or indirect support to Russia’s military and industrial complex.
