To Put the Squeeze on Putin: EU's 18th Sanctions Package Targets Lower Oil Prices and Shadow Fleet
EU nations aim to inflict damage upon Putin by driving down oil prices
In June 2025, the EU Commission unveiled its 18th sanctions package aimed at intensifying economic pressure against Russia—a response to its ongoing war in Ukraine. "Russia only understands strength," EU Commission President Ursula von der Leyen declared at the package's presentation in Brussels.
The plan includes a lower oil price cap from $60 to $45 per barrel and targeting Russia's 'shadow fleet' used to bypass sanctions. The price reduction aligns with market conditions, according to von der Leyen, and will be discussed at the upcoming G7 summit in Alberta, Canada. EU officials assert that the oil revenue previously lost due to previous sanctions is already evident [1][3].
More Pain for Putin: The Wider Scope of Sanctions
Apart from the oil sector, the package targets Russian shipping by expanding the scope of the 'shadow fleet' list to over 350 vessels. Further restrictions will be placed on Nord Stream pipelines, aiming to sever Russia's energy connections [3][5].
Financial isolation of Russia is also a key aspect of the plan, with 22 more Russian banks being added to the SWIFT international payment system exclusion list, and a ban on transactions with third-country financial operators supporting trade with the country [3][5].
In addition, the package includes export controls on critical technologies and industrial goods, with bans on machinery, metals, plastics, chemicals, and dual-use goods, intended for drone, missile, and weapons system production [3].
Cracks in the Sanctions Strategy: Lithuania's Concerns
Lithuanian President Gitanas Nauseda criticized the lack of follow-through on sanctions threats made during German Chancellor Friedrich Merz's visit to Kyiv. He emphasized the importance of comprehensive measures in the 18th sanctions package [2].
Sources:
- [1] ntv.de
- [2] Image/AFP
- [3] EU Enrichment Data
- [4] Annual GDP data
- [5] Oil revenue data
- EU
- EU Commission
- EU Commission President
- Sanctions
- Shadow Fleet
- Oil Prices
- Banking Sector
- Military and Industrial sectors
- Export Controls
- Western Allies Coordination
- Peace Negotiations
The EU Commission's 18th sanctions package, announced in June 2025, extends beyond the oil sector to include financial isolation, military and industrial sectors, and export controls as tools to exert pressure on Russia. This package also targets the Russian banking sector by adding 22 more banks to the SWIFT international payment system exclusion list, and imposes restrictions on Nord Stream pipelines [3][5]. Additionally, the general-news media should be aware that the package also includes a lower oil price cap from $60 to $45 per barrel, aiming to impact both the employment and finance industries within Russia, particularly in the industry related to oil production [1][3].
