On 18 July 2025, the European Union adopted its 18th package of economic and individual sanctions against Russia, in response to its ongoing war of aggression against Ukraine. This new package of restrictive measures significantly expands the EU's efforts to weaken Russia's ability to sustain its military campaign by targeting key sectors such as energy, finance, trade, and critical technologies. It also increases pressure on entities and individuals complicit in circumventing EU sanctions.
A key feature of the 18th package is a tighter oil price cap. The EU has reduced the maximum allowed price for Russian seaborne crude oil exports under the G7+ coalition mechanism from USD 60 to USD 47.60 per barrel, a move designed to erode Russia's oil revenue. To ensure continued effectiveness, the EU introduced a dynamic adjustment mechanism that will revise the cap every six months based on international market trends. At the same time, the EU has moved to close a critical loophole by banning imports of refined petroleum products produced from Russian crude in third countries. Only select countries, namely the US, UK, Canada, Norway, and Switzerland, are exempt from this measure. The new measures also include a complete prohibition on transactions related to Nord Stream 1 and 2, effectively ending any EU involvement with the pipeline infrastructure.
The EU further expanded its blacklist of vessels suspected of helping Russia evade sanctions through its "shadow fleet". An additional 105 vessels have now been banned from EU ports and associated services, bringing the total to 444 ships. This comes in response to the widespread use of deceptive shipping practices and opaque ownership structures to bypass existing oil-related restrictions.
In the financial sector, the EU imposed full transaction bans on 22 additional Russian banks, adding to the 23 institutions already under severe restrictions. This action is aimed at further isolating Russia from the international financial system and curbing its access to capital. For the first time, the sanctions regime now lowers the threshold for targeting third-country financial institutions, including crypto service providers, that facilitate sanctions evasion through Russia's alternative messaging system, SPFS. Additionally, the Russian Direct Investment Fund (RDIF), including its sub-funds and affiliated companies, is now subject to a comprehensive transaction ban, with legal tools in place to broaden this to other similar entities across the EU.
On trade, the package introduces export bans on critical advanced technologies used in Russia's defence and industrial base. These include computer numerical control (CNC) machines, plastics, specialized chemicals, and precision manufacturing tools. The Commission estimates the new measures will block over €2.5 billion in potential exports, based on 2024 figures. Furthermore, the EU added 26 new entities to its list of companies subject to tighter export controls, many based in China, Türkiye, and Hong Kong. These entities are believed to have aided Russia's military or helped circumvent sanctions, particularly in relation to drone manufacturing and dual-use goods.
The EU has also expanded its ban on the transit of goods through Russian territory. This now covers a wider range of economically critical items used in construction and transport, building on existing restrictions that already affected sensitive materials and technologies. In addition, the EU has extended its sanctions against Belarus, aligning them more closely with the Russian measures. This includes new restrictions on Belarusian banks and expanded embargoes on military and dual-use exports.
The 18th package also contains measures relating to accountability and enforcement. The EU has added 14 individuals and 41 entities to its sanctions list, including military leaders, propagandists, government officials involved in the forced re-education of Ukrainian children, and entities participating in the looting or destruction of Ukraine's cultural heritage. In addition, to further protect Member States, the EU has introduced investor–state arbitration safeguards. These measures aim to block Russian firms from exploiting bilateral investment treaties (BITs) to sue EU governments over sanctions implementation.
The EU's 18th sanctions package signals not only continued unity among Member States but also an intensification of the economic and legal pressure on Russia and its allies. As enforcement expands and coordination with international partners deepens, the EU has reiterated that sanctions will remain in place for as long as necessary and may be strengthened even further if Russia fails to cease its aggression.
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