News
The European Union has agreed on the bloc’s 18th package of sanctions against Russia, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas announced on July 18, calling it “one of the strongest to date.” The new sanctions include measures:
- Blacklisting another 105 vessels of Russia's “shadow fleet”
- Restricting Russian banks’ access to financing
- A ban on the Nord Stream gas pipeline
- Lowering the oil price cap
- Putting pressure on Chinese banks that assist Russia in circumventing sanctions
- Blocking the export of unmanned system technologies
- Sanctioning Rosneft's largest oil refinery in India
- Sanctioning those “involved in the ideological indoctrination of Ukrainian children.”
Kallas did not specify the level at which the new price cap on Russian oil would be set. Reuters, citing sources, reported that the new cap would fluctuate based on market prices, with “a moving price cap on Russian crude at 15% below its average market price.” Currently, that would mean a cap of $47.60 per barrel, down from the current $60.
The 18th sanctions package was proposed by the European Commission in June, but the initiative was blocked by the governments of Hungary and Slovakia. They argued that the new measures would rob EU countries of the opportunity to purchase cheap Russian natural gas and oil, ultimately driving up utility costs for the population.
Subsequently, Slovak Prime Minister Robert Fico agreed to support the new package, having secured guarantees for Slovakia regarding gas prices from European Commission President Ursula von der Leyen.