The European Union is expected to adopt its 18th package of sanctions against Russia in the coming days, intensifying pressure on Moscow over its ongoing war in Ukraine. First proposed by President Ursula von der Leyen and EU High Representative Kaja Kallas on June 10, the new measures target key revenue streams and critical sectors of the Russian economy, including energy exports, financial institutions, and military suppliers.

Commission President Ursula von der Leyen called the package “robust” and “hard-biting,” stressing that the goal is to further weaken Russia’s capacity to sustain its aggression.

At the heart of the package is a proposal to lower the oil price cap from $60 to $45 per barrel. Oil remains a key source of income for the Russian state, accounting for about one-third of government revenues. “By cutting this revenue source, we directly impact Russia’s ability to fund its aggression,” von der Leyen stated.

The Commission also proposes banning the use of the Nord Stream 1 and 2 pipelines, formally ending any possibility of future gas flows via these routes. “No EU operator will be able to engage in any transaction related to Nord Stream.”.

Another key element is the blacklisting of 77 additional vessels from Russia’s so-called “shadow fleet,” used to circumvent oil sanctions. This brings the total number of sanctioned vessels to over 400, barring them from docking at EU ports and increasing operational challenges for Russian exporters.

The package also expands the EU’s financial restrictions. The current SWIFT messaging ban will be upgraded to a full transaction ban, and 22 more Russian banks will be added to the sanctions list. These measures are intended to further isolate Russia’s banking sector from the global financial system.

New export bans valued at over €2.5 billion are planned, targeting industrial goods such as machinery, metals, chemicals, and plastics. Restrictions will also apply to dual-use goods and technologies that could be used in military applications, including drones and missiles. The package lists 22 additional entities, including companies based in China and Belarus, alleged to support Russia’s military and industrial sectors, increasing the total number of sanctioned firms to over 800. “We want to ensure that Russia cannot modernise its weapons using European technologies,” von der Leyen said.

The European Commission has been insisting that the sanctions are having a tangible impact. According to Kallas, €210 billion of Russian central bank reserves remain frozen, oil and gas revenues have declined by nearly 80%, and Russia’s sovereign wealth fund shrank by $6 billion in May alone. Following the 17th sanctions package, Russian oil exports through the Black Sea and Baltic Sea fell by 30% within just one week.

The evolving sanctions regime reflects the EU’s ongoing efforts to respond to the conflict in Ukraine through economic measures aimed at restricting Russia’s financial and military capabilities. The 18th package is likely to be formally adopted before the end of the month.