The European Union has approved its 18th sanctions package against Russia — and this time, the measures are groundbreaking. At the heart of the new package is a flexible oil price cap targeting one of the Kremlin’s last stable revenue streams, while aiming to avoid global energy market disruption.


🔹 New oil price cap: The previous fixed limit of $60 per barrel will now be replaced by a floating cap — roughly $15 below global market prices. This means the cap could start around $45–50 and will be automatically adjusted at least twice a year. The goal is to maintain sustained pressure on Moscow without triggering an energy crisis.

🔹 Strike on Rosneft: For the first time, the EU has targeted Russian-linked infrastructure outside its borders, namely Rosneft’s largest refinery in India. This marks a new level of international enforcement and aims to curb sanction evasion efforts.

🔹 Blacklist of tankers and export goods: Dozens of tankers from Russia’s “shadow fleet” — used to covertly bypass sanctions — have been added to the blacklist. Sanctions also extend to traders and entities linked to this network. The EU is expanding its list of banned exports to include any dual-use goods tied to weapons manufacturing.

🔹 Banking sector under fire: The EU is considering removing over 20 Russian banks from the SWIFT payment system. This could severely limit Russia’s ability to move funds globally and finance foreign operations — potentially one of the harshest economic measures yet.

🔹 $2.8 billion trade block: The new package proposes export bans worth up to $2.8 billion, aimed at restricting Russia’s access to advanced technologies, components, chips, and other vital industrial equipment.

Political resistance and Slovak veto

Approval of the package was delayed due to a veto from Slovakia, which demanded energy exemptions. Slovak Prime Minister Robert Fico eventually agreed after receiving written assurances from the European Commission regarding the protection of his country's energy interests.

What will the G7 do?

While the EU leads the charge, all eyes are now on the G7 nations, which originally helped craft the initial price cap deal in December 2022. Canada — currently holding the G7 presidency — has yet to confirm whether it will support the new dynamic pricing model. If G7 partners follow suit, it will become increasingly difficult for Russia to bypass the price ceiling.


#Eu , #russia , #Sanctions , #oil , #Geopolitics

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