In a major escalation against the Kremlin, the European Union has approved its 18th package of sanctions against Russia, marking a significant hardening of measures. Following overnight negotiations that resolved Slovakia’s veto, EU ministers gave the formal green light just minutes before the final General Affairs Council meeting before the summer recess.
The package delivers a severe blow to Russia’s war economy. European Commission President Ursula von der Leyen declared, “We are hitting the Russian war machine at its heart.” Key measures include:
1. **Deepened Oil Price Cap:** The cap on Russian oil is significantly reduced to $47.6 per barrel, set dynamically at 15% below the average market price for Urals crude. This targets third countries like India and China, making it less profitable to import Russian oil for resale to the West. The EU acted autonomously this time, ahead of the G7, but expects allies to align to boost effectiveness.
2. **Nord Stream Pipelines Sanctioned:** A total ban on gas transit through the Nord Stream 1 and 2 pipelines effectively renders them obsolete industrial relics, dismantling a symbol of past EU energy dependence on Moscow.
3. **Banking Sector Hit:** Transactions with Russian banks are now fully prohibited. An additional 22 Russian banks were added to the sanctions blacklist, bringing the total to 45 entities.
4. **Targeting the Shadow Fleet:** Over 100 vessels in Putin’s “shadow fleet,” used to circumvent energy trade sanctions, were added to the EU blacklist.
5. **Gas Storage Mandate Extended:** The requirement for EU countries to fill gas storage to 90% capacity is extended into next winter, albeit with potential exceptions.
To secure Slovakia’s approval, the Commission provided written guarantees. These include legal protection for Slovakia against potential Russian energy company lawsuits over terminated contracts, assurances on gas prices, quantities, and transport tariffs, and the possibility of using EU funds to offset high gas prices.
The Kremlin reacted furiously, with spokesman Dmitry Peskov denouncing the “illegal” sanctions, claiming they would backfire, and asserting Russia had developed “certain immunity” to such measures. However, EU officials believe this package could be particularly impactful.
The sanctions received broad support within the EU, including from Italy. Italian Minister for European Affairs, Tommaso Foti, emphasized the goal: “We maintain high pressure so that Moscow seriously commits to the negotiating table.” The UK immediately aligned with the EU oil price cap and announced new sanctions against Russian intelligence officers for “malign threat activity” against the UK and allies. NATO and the EU have vowed a robust response to such hybrid attacks.