Edith Hejberg
Kyiv hopes the economic pressure will gradually deprive Moscow of the resources needed to sustain its military aggression.
New sanctions against russia have rolled out. A central measure in the sanctions will be capping the oil prices
Sanctions against Russia
The European Union has approved a sweeping new round of sanctions against Russia, it is the 18th package since the invasion of Ukraine. Central to the measures is a reduced oil price cap, now set at $47.60 per barrel, as the bloc seeks to cut off revenue that fuels Moscow’s war machine.
The sanctions also target key elements of Russia’s energy and financial networks.
Enforcement Challenges and Shadow Fleet Sanctions
While the EU aims to strike a financial blow, enforcement remains a murky area. Previous caps have had limited success, with Russia continuing to sell oil above the threshold.
A major issue is the lack of clarity over who’s responsible for monitoring compliance. This new package attempts to tighten control by blacklisting 105 ships in Russia’s “shadow fleet”, a group of tankers suspected of skirting restrictions through covert operations.
Cracking Down on Nord Stream and Financial Networks
In a symbolic move, the EU has banned transactions linked to the Nord Stream pipelines beneath the Baltic Sea, further distancing Europe from Russian energy infrastructure.
The sanctions also extend to Russian financial institutions and unnamed Chinese banks believed to be enabling sanctions evasion a growing concern among Western policymakers.
Ukraine Applauds the Measures Amid Escalating Attacks
Ukrainian leaders quickly welcomed the decision. President Volodymyr Zelenskiy called the move “essential and timely” as Russian forces intensify aerial assaults on Ukrainian cities and villages. Kyiv hopes the economic pressure will gradually deprive Moscow of the resources needed to sustain its military aggression.
Divisions Among Allies and Limited U.S. Support
While the EU and the UK have pushed for a tougher cap, the United States has resisted lowering it, citing limited impact and enforcement hurdles. Without U.S. backing and given the dollar’s dominance in oil trading the EU’s ability to fully enforce the cap remains constrained. Still, the bloc moved ahead independently, determined to maintain pressure on Russia.
Internal EU Hurdles Finally Overcome
The package faced delays due to internal EU disputes. Slovakian Prime Minister Robert Fico had been withholding support, seeking energy-related concessions.
His last-minute approval on Thursday cleared the way. Shipping nations like Greece, Cyprus, and Malta also voiced concerns, fearing the impact on their maritime sectors. Malta ultimately gave its approval, allowing the measures to pass.
