The European Union has approved its 18th package of sanctions against Russia, introducing a sweeping set of measures aimed at tightening enforcement of its oil price cap and curbing Moscow’s energy revenues amid the ongoing war in Ukraine.

At the heart of the new sanctions is a dynamic price ceiling on Russian crude oil, now set at 15% below the average market rate, effectively lowering the cap to $47.60 per barrel from the previous $60 benchmark. EU officials say the revised cap is designed to close loopholes and prevent Russia from profiting off discounted oil sales that have continued despite earlier restrictions.

The package also targets Russia’s so-called “shadow fleet”—aging tankers used to circumvent sanctions—with 105 additional vessels banned from EU ports and waters, bringing the total to over 400. 

Transactions related to the Nord Stream gas pipelines have been prohibited, and all dealings with Russian financial institutions are now banned.

In a notable escalation, the EU will also bar imports of petroleum products refined from Russian crude, even if processed in third countries, with exceptions only for select allies such as the US, UK, and Norway. The sanctions extend to entities in China, Hong Kong, Turkey, and India, including Nayara Energy, a refinery partially owned by Russia’s Rosneft.

EU foreign policy chief Kaja Kallas called the package “one of the strongest to date,” emphasizing that the bloc will “keep raising the costs so stopping the aggression becomes the only path forward for Moscow”.

Despite the EU’s assertive stance, analysts caution that enforcement remains challenging without US backing, as global oil transactions are largely dollar-denominated and routed through American financial systems.