EU Unveils Aggressive Sanctions Package Targeting Russia’s Oil Revenue and Global Trade Links

Brussels Proposes New Measures to Cut Kremlin Profits and Undermine Sanctions Evasion

The European Commission has introduced a sweeping 18th sanctions package against Russia, aimed at further crippling the Kremlin’s ability to finance its military operations. The proposal, announced in Brussels by Commission President Ursula von der Leyen and EU foreign affairs chief Kaja Kallas, includes a broad set of measures that go far beyond existing restrictions. At the center is a plan to lower the international price cap on Russian crude oil exports from $60 to $45 per barrel. The Commission hopes to push this measure forward at the upcoming G7 summit in Alberta, Canada.

The current oil price cap was introduced in December 2022 by the EU, G7 nations, and Australia. It was designed to limit Moscow’s energy revenues without destabilizing global markets. However, with oil prices having hovered near the cap level in recent months, Brussels argues that market conditions now require a stricter ceiling.

Von der Leyen emphasized the strategic purpose behind the new push. “Strength is the only language Russia understands,” she said. EU officials are seeking alignment with the United States on these initiatives, but whether the administration of President Donald Trump will fully support the changes remains uncertain.

Trump Administration Hesitates as Congress Increases Pressure

Despite repeated signals from Trump’s team that further sanctions could be imposed on Moscow, the White House has not yet acted. Trump’s approach has leaned toward pushing Ukraine into peace negotiations rather than escalating pressure on Russia. This has raised concerns among EU leaders, who fear Washington may hesitate to endorse tougher penalties unless forced to act.

To increase transatlantic alignment, von der Leyen has held direct talks with Republican Senator Lindsey Graham, who has introduced a separate and highly restrictive sanctions bill in the US Congress. Graham’s proposal includes a dramatic 500% tariff on countries that continue to purchase Russian energy, effectively targeting nations that undermine the existing price cap regime. However, Trump’s support for Graham’s legislation remains unclear, with internal reports suggesting the president may seek to soften some of its provisions.

Blocking a Pipeline Comeback

One of the most politically sensitive elements of the proposed EU sanctions package is a provision to prohibit any direct or indirect activity related to the repair or reactivation of the damaged Nord Stream pipelines under the Baltic Sea. These pipelines—Nord Stream 1 and 2—are not currently operational. The former has been idle since Russia halted gas deliveries, and the latter never received final approval from the German government.

Three of the four pipeline tubes were severely damaged by explosions in September 2022. While no official agreement has been made to revive them, speculation persists that a future US-Russia agreement could involve restarting the pipelines as part of a peace settlement. Berlin, however, has made clear it wants to prevent that outcome. By embedding a permanent legal barrier into EU sanctions law, Germany and its allies can shield themselves from future political pressure to reverse course.

Expanded Sanctions on Russian Oil Transport Networks

Brussels is also targeting the so-called “shadow fleet” of oil tankers used by Moscow to bypass international restrictions. The new proposal includes sanctions against 77 additional vessels suspected of helping Russia ship oil at above-cap prices. Notably, for the first time, an individual tanker captain will be added to the EU’s personal sanctions list, facing travel bans and asset freezes.

The package extends beyond shipping. A new round of restrictions is aimed at 22 more Russian financial institutions, further limiting Moscow’s access to global financial systems. The Commission also plans to sanction firms in third countries—especially in the UAE and China—that are believed to assist Russia in circumventing sanctions.

Ban on Russian-Origin Refined Products and Sensitive Technologies

Another critical part of the sanctions proposal is an import ban on refined oil products like diesel, kerosene, and lubricants, even if they were processed outside Russia. As long as the base crude oil comes from Russia, the end product would be prohibited in the EU under the new rules.

Brussels also aims to disrupt Russian weapons production. The package includes export bans on industrial goods such as machinery, metals, plastics, and chemicals. These items are considered dual-use or components in the production of drones, rockets, and other weapon systems. The Commission argues that cutting off access to these goods is essential to degrading Russia’s military manufacturing capacity.

A Strategic Message to the Kremlin and the Global Market

Through the expanded sanctions, the EU hopes not only to reduce Russia’s economic power but to send a political signal. By imposing sweeping penalties on enablers abroad and pressing for tighter coordination with G7 partners, Brussels is attempting to close loopholes and isolate Moscow further.

At the same time, the package reflects internal EU dynamics. Berlin’s backing of sanctions on the Nord Stream pipelines indicates a desire to codify current geopolitical shifts and prevent any rollback—even under external pressure from Washington.

The success of the sanctions package, however, depends on two factors: full agreement among all 27 EU member states and the degree to which the United States, under Trump’s leadership, is willing to match Europe’s stance. While formal adoption is pending, the EU’s move has added urgency to global efforts to recalibrate the West’s pressure on Russia.