The Member States of the European Union (EU) approved a new package of sanctions against Russia for the war against Ukraine, which includes a revised price ceiling oilnew banking restrictions and restrictions on fuel produced by Russian oil.
The package, in the 18th of the block from Moscow’s complete invasion, provides for about 20 more Russian banks from the international SWIFT payment system and the complete ban on transactions, as well as the imposition of restrictions on Russian oil refined in third countries. A large oil refinery in India, partly belonging to Russia’s state -owned oil company Rosneft PJSC, also entered the blacklist, according to Bloomberg.
The ceiling for Russian oil, which is currently set at $ 60 per barrel, will be dynamically 15% below market prices and in the future. The new mechanism will predict that the limit will start somewhere between $ 45-50 and will be automatically revised at least twice a year based on market prices.
The latest sanctions of the European Union are aimed at further reducing Kremlin’s energy revenue, most of which comes from oil exports to India and China.
However, the initial price ceiling imposed by the group of seven had a limited impact on Russia’s oil flows, as the country has created a huge shadow fleet of tankers to transport its oil without using western services.
The EU has also so far failed to persuade the US to provide critical support at the lowest ceiling. Discussions continue with other members of the G-7, but the US opposition makes it difficult to reach an agreement. The United Kingdom, however, is expected to agree with this move.
The EU’s move to reduce fuel such as a Russian -produced diesel could have an impact on the market, as Europe imports fuel from India, which in turn buys large quantities of Russian crude. Diesel markets have been signs of closeness for several weeks and prices have been reinforced in the first European transactions in relation to crude.
Block’s envoys supported the sanctions on Friday morning, as soon as Slovakia signed. The package will be approved later on Friday at a meeting of EU ministers in Brussels. There may still be corrections of 11 o’clock prior to the official approval of the measures.
Other measures include penalties in dozens of other ships in Russia’s shadow fleet, resulting in their total number exceeding 400, as well as several entities and traders working with the secret fleet- the addition China and elsewhere, which are thought to help Russia to bypass the blocking and energy restrictions of the block.
In the natural gas market, there were also sanctions on the Nord Stream pipelines.
Russia must analyze the latest package of restrictions to minimize its consequences, but at the same time the nation has already “acquired a certain immunity from sanctions,” the interfax, citing Kremlin’s spokesman Dmitry Peskov. “We have adapted to life under sanctions,” Peskov said.
The package had been delayed for weeks from Slovakia as it demanded relief from an EU plan to gradually abolish Russian fossil fuels. Prime Minister Robert Fico announced on Thursday (17.7.2025) that he is lifting his country’s veto after accepting the guarantees provided by the European Commission.