EU’s 18th sanctions package against Russia takes effect Targeting key sectors and foreign entities

The European Union’s 18th package of sanctions against Russia has officially come into force, introducing new restrictions against individuals, companies, banks, and oil tankers connected to the Kremlin.

The package targets 18 individuals and 41 legal entities, including cultural, educational, and industrial figures within Russia, as well as foreign nationals and companies from countries such as China, India, Iran, Azerbaijan, and the United Arab Emirates, as announced on the official website of the European Union.

Among those sanctioned are the general director of Mosfilm, the deputy culture minister of Crimea, the acting rector of the Crimean Federal University, a major shareholder of PhosAgro, and a former head of Russia’s Territorial Development Fund. These individuals now face entry bans to the EU, and any assets they hold within the bloc are frozen.

The sanctions extend to critical energy infrastructure, prohibiting all transactions involving the Nord Stream and Nord Stream 2 pipelines. The EU has also lowered its price cap on Russian crude oil exports from the previous $60 per barrel, in place since 2022, to $47.60 per barrel, tightening financial pressure on Moscow's energy revenues.

Major Russian industrial enterprises have also been added to the sanctions list, including manufacturers of semiconductors, telecommunications equipment, and special-purpose machinery. The EU has banned all transactions involving the Russian Direct Investment Fund (RDIF), further isolating Russia from global capital markets.

Foreign firms assisting Russia’s war economy are also subject to the new restrictions. These include companies registered in Hong Kong, mainland China, India, Singapore, Mauritius, and other jurisdictions. The European Commission stated that the targeted entities are accused of supplying dual-use goods or providing logistical and technical support to Moscow's defence industry.

The financial sector has been hit particularly hard. The sanctions cover 22 Russian banks, including Yandex Bank, Ozon Bank, Bank Saint Petersburg, and several regional and specialised lenders. These institutions have now been cut off from EU financial markets and services, further tightening the squeeze on Russia’s access to global financing.

Additionally, 105 tankers have been sanctioned, with the EU closing its ports to them and banning European companies from providing services such as insurance or technical assistance. The targeted vessels are believed to play a key role in the so-called shadow fleet used by Russia to bypass oil sanctions.

The 18th sanctions package had faced several delays due to internal EU disagreements, particularly Slovakia’s insistence on securing energy supply guarantees. However, Bratislava ultimately lifted its veto, paving the way for the new measures to be adopted earlier this week.

Speaking on the latest restrictions, EU foreign policy chief Kaja Kallas said the new sanctions would cause significant harm to Russia’s energy, banking, and military-industrial sectors. The Kremlin responded by asserting that Russia had adapted to the sanctions regime over the past three years but reiterated its position that such unilateral measures are illegal under international law.

By Tamilla Hasanova