EU proposes 18th package of sanctions against Russia, Russia extends its countermeasures

The European Commission has proposed new sanctions on Russia, targeting energy, finance, and military sectors, while Russia extends its countermeasures until 2025. The proposal is still under debate within the EU.

On Tuesday, the European Commission – the EU's primary executive body – unveiled a new draft of sanctions targeting Russia. In response, Russia has moved to extend its countermeasures against these sanctions.

The European Union is set to begin discussions on the draft this week. If approved, this will mark the 18th round of sanctions the EU has imposed on Russia, focusing on energy, finance, and military sectors.

Regarding energy, the draft includes measures to prevent the reopening of the Nord Stream gas pipelines, which have been out of service. It also proposes adding more ships to Russia's "shadow fleet" used for transporting oil and gas, bringing the total to over 400.

Additionally, the draft suggests sanctions on about 70 old Russian oil tankers and a reduction in the G7-imposed price cap on Russian crude oil from $60 to $45 per barrel to curb Russia's energy revenues. Furthermore, it advocates a ban on importing refined oil products derived from Russian crude.

But Ukraine’s President Volodymyr Zelenskyy said it’s still not enough and he’s calling for a tougher cap of just $30 a barrel.

“It would force them to seek peace—because no other argument works," said Zelenskyy. "I know some partners are discussing compromise figures. But enough compromises with Russia. Every compromise delays peace. We are asking for a real reduction in the price of Russian oil. That is how we truly bring the war closer to an end.”

On the financial front, the draft recommends sanctioning 22 more Russian banks, expanding restrictions such as removal from SWIFT and a complete transaction ban. It also targets the Russian Direct Investment Fund, its subsidiaries, and its extended network.

In the military sector, the draft proposes sanctions on more companies allegedly aiding Russia’s military, aiming to hinder Russia’s military production capabilities.

European Commission President Ursula von der Leyen stressed that the EU, alongside other G7 nations, should work to persuade the United States to join in these sanctions to maximize their impact. She emphasized that the EU will continue pushing the U.S. for alignment during the G7 Leaders' Summit in Canada next week.

“My assumption is that we do that together as G7. We have started that as G7. It was successful as a measure from the G7, and I want to continue this measure as G7."

However, differences remain among EU members. Slovak Prime Minister Robert Fico voiced that Slovakia would not support the sanctions package unless the EU addresses practical energy issues. Hungary has also opposed or voted against EU sanctions and military aid to Ukraine on several occasions.

Meanwhile, in Moscow, Russian President Vladimir Putin signed a decree extending countermeasures on price caps for Russian oil and petroleum products until December 31, 2025. In 2022, the EU and G7 imposed a $60 per barrel price cap on Russian seaborne oil. In response, Putin banned the supply of Russian oil and petroleum products to any foreign company or individual engaging with this price cap mechanism, and he has since extended this decree multiple times.

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