On
18 July 2025, the European Union adopted its
18th package of restrictive measures against Russia, in response to the ongoing war of aggression against Ukraine. This package introduces
enhanced economic sanctions, targets
sanctions circumvention, and
expands existing restrictions on critical sectors.
Energy-Related Measures
- Oil Price Cap Adjustment: The cap on Russian crude oil is reduced from $60 to $47.6 per barrel. A new dynamic mechanism ensures that the cap stays 15% below the global market average for Urals crude over the previous six months. This creates both predictability and sustained pressure on Russian revenues.
- Ban on Nord Stream Transactions: EU entities are now prohibited from engaging in any transactions related to Nord Stream 1 and 2 pipelines, shutting down potential future developments involving this infrastructure.
- Refined Oil Import Ban: New restrictions prevent imports of refined oil products made from Russian crude — even when these are processed in third countries. This measure closes loopholes and aims to cut Russian oil revenue entirely from the EU.
- Shadow Fleet Sanctions: The EU adds 105 vessels to its blacklist, targeting tankers suspected of operating under deceptive practices to transport Russian oil. Three LNG tankers were removed from the list after clear commitments to cease operations in Russian LNG projects. In total, 444 vessels are now sanctioned, banned from entering EU ports or receiving services.
- Expanded Listings: Sanctions now apply to international companies managing shadow fleet tankers, oil traders, and a major Indian refinery linked to Rosneft. Even ship captains and registry operators have been designated, showing the EU's intent to hold individuals accountable.
Financial Sector Restrictions
- Full Transaction Ban for Certain Banks: The partial ban on messaging services (like SWIFT) is now a full transaction ban for 23 Russian banks. EU companies can no longer conduct any business with them.
- 22 More Russian Banks Added: The total number of sanctioned banks rises to 45, deepening Russia’s financial isolation.
- Crypto and Third-Country Operators: New measures target financial operators (including crypto platforms) in non-EU countries that help Russia circumvent sanctions or support its war efforts.
- Sanctions on RDIF: The Russian Direct Investment Fund, along with its subsidiaries and investments, is now fully sanctioned. This move blocks one of Russia’s key tools for accessing foreign capital and evading restrictions.
- Banking Software Ban: Provision of banking-related software and services to Russian entities is now forbidden, further hindering Russia’s financial infrastructure.
Trade Measures
- New Export Restrictions: The EU expands bans to cover advanced technologies and industrial goods valued at €2.1 billion (based on 2024 export volumes). These measures aim to cripple Russia’s defense production and high-tech sectors.
Anti-Circumvention Tools
- 26 More Entities Listed: This includes 15 based in Russia, and 11 in third countries (notably China/Hong Kong and Türkiye) that have been identified for helping Russia bypass sanctions.
- Transit Ban Expansion: Adds 8 new product categories (CN codes) to the ban list, mostly linked to construction and energy. These goods can no longer transit Russia when exported from the EU to other countries.
- Catch-All Provision: A new rule allows Member States to block suspicious exports of advanced technology to third countries when there’s a risk of re-export to Russia.
Military and Supply Chain Targeting
- 55 New Designations: These include companies in Russia, Belarus, and China that support Russia’s military operations — directly or through the supply of battlefield goods.
- Focus on Supply Chain Disruption: The listings target suppliers of components used in weapon systems, drone manufacturing, and missile development.
Human Rights and Accountability
- Sanctions for Deportation and Indoctrination: The package adds another individual responsible for the forced indoctrination of Ukrainian children. Over 80 individuals and entities are now sanctioned for involvement in child deportation and re-education.
- Cultural Manipulation and Propaganda: New sanctions also cover Russian proxies in occupied territories, a known propagandist, and individuals responsible for the appropriation of Ukrainian cultural heritage.
Safeguarding EU Member States
- New Investment Protection Rules: The EU introduces safeguards against investment arbitration claims related to sanctions. This gives Member States legal grounds to recover damages from sanctioned entities that attempt to challenge EU measures through international dispute resolution
Additional Measures Against Belarus
The package mirrors certain Russian sanctions by targeting Belarus:
- Ban on arms procurement from Belarus.
- New catch-all clause for tech exports.
- Full transaction ban on Belarusian banks previously under messaging service restrictions.
- Export bans on sensitive goods and new asset freezes on 9 Belarusian entities.
How Can Bybloserve Management Assist You?
At Bybloserve Management, we help clients
navigate complex EU sanctions frameworks with clarity and confidence. Our experienced team can assist with
compliance reviews,
UBO screening,
risk assessments, and
due diligence to ensure your business operations remain fully aligned with evolving EU regulatory requirements. Whether you're handling cross-border transactions, managing third-party relationships, or updating internal compliance procedures, we provide tailored guidance and actionable solutions to reduce risk and protect your reputation.
For more information, please send your queries at
info@bybloserve.com