EU Approves 18th Round of Sanctions on Russia, Price Cap on Oil Adjusted

The European Union has approved a new round of sanctions against Russia, marking the 18th set of measures since the conflict with Ukraine began. This decision comes after Slovakia abandoned its veto, allowing the EU to proceed with the new sanctions. The measures include modifying the price cap on Russian oil, imposing new restrictions on banks, and targeting the Nord Stream gas pipeline to ensure it does not resume operations. Approximately 20 Russian banks will be disconnected from the international payment system SWIFT and face comprehensive trading bans. Additionally, the sanctions will apply to Russian oil refined in third countries, further isolating Russia from the global economy.

The price cap on Russian oil is currently set at 60 dollars per barrel but will be dynamically adjusted to be 15 dollars below the market price. This mechanism aims to ensure that the price cap remains effective and responsive to market fluctuations. The sanctions also include measures against dozens of ships in Russia's shadow fleet of oil tankers, bringing the total number of sanctioned vessels to over 400. These actions are part of a broader strategy to cut off funding for Russia's military operations and support Ukraine's defense efforts.

Slovakia had previously sought exemptions from the EU's plan to gradually phase out Russian fossil fuels, which delayed the implementation of the sanctions for several weeks. However, after receiving assurances from the EU Commission, Slovakia agreed to drop its veto, paving the way for the approval of the new sanctions. The EU's foreign policy chief emphasized that these measures are crucial in holding Russia accountable for its actions and supporting Ukraine in its defense against Russian aggression. The sanctions are expected to have a significant impact on Russia's economy and its trading partners, reflecting the EU's commitment to standing with Ukraine.