EU, UK tighten pressure on Russia with new oil sanctions and banking curbs
The move includes slashing the price cap on Russian oil exports, blacklisting additional vessels from Russia's so-called shadow fleet, and expanding restrictions on financial transactions and dual-use exports. It marks the EU's 18th package of sanctions since Russia launched its full-scale invasion in 2022.
EU foreign policy chief Kaja Kallas said the message to Moscow was 'clear' — that Europe would 'not back down' in its support for Ukraine. 'The EU will keep raising the pressure until Russia ends its war,' she said.
UK JOINS PRICE CAP PUSH
British Foreign Secretary David Lammy said London was joining the EU in tightening the oil price cap, describing the step as 'striking at the heart of the Russian energy sector.'
'As Putin continues to stall on serious peace talks, we will not stand by,' he said.
Ukrainian President Volodymyr Zelensky praised the new sanctions as 'essential and timely.'
The oil price cap, originally introduced by the G7 in 2022, is designed to reduce Russia's export revenues by preventing shipping and insurance firms from servicing oil sold above a fixed threshold.
The cap will now be lowered to 15 percent below global market prices, or roughly US$47.60 per barrel, according to EU officials. The limit can be adjusted as global oil prices fluctuate.
DIVISIONS OVER ENFORCEMENT
The updated price cap comes despite a lack of support from US President Donald Trump, who has yet to sign on to the revised limit.
EU officials acknowledged that the effectiveness of the measure would be diminished without Washington's cooperation. They expressed hope that other G7 nations, including Canada and Japan, would align with the new approach.
SHADOW FLEET, PIPELINES, REFINERIES TARGETED
The latest EU package also blacklists more than 100 vessels from Russia's so-called 'shadow fleet' — older tankers allegedly used to bypass oil sanctions.
New restrictions aim to prevent the reopening of the defunct Nord Stream 1 and 2 gas pipelines in the Baltic Sea.
Sanctions will also target a Russian-owned oil refinery operating in India and two Chinese banks, as the EU cracks down on Moscow's efforts to sustain trade ties outside the West.
Additional bans were imposed on transactions with more Russian banks and on exports of dual-use goods that could support military operations in Ukraine.
SLOVAKIA DROPS OPPOSITION
The package was approved after Slovakia dropped its weeks-long opposition following talks with Brussels over energy guarantees.
Slovak Prime Minister Robert Fico, a Kremlin-friendly leader, said he received 'guarantees' from EU officials about long-term gas prices.
TRUMP THREATENS SECONDARY TARIFFS
The sanctions came days after Trump issued an ultimatum to Russia, threatening 'massive secondary tariffs' on buyers of Russian energy if Moscow does not halt its military campaign within 50 days.
Trump's warning marked a sharp turn from his earlier push to reset relations with the Kremlin, with administration officials suggesting the president had grown increasingly frustrated with Putin's lack of movement toward a ceasefire.
WESTERN PRESSURE GROWS
Western officials admit that sanctions have yet to cripple Russia's economy, but they argue key indicators such as inflation and interest rates are worsening.
French Foreign Minister Jean-Noel Barrot described the latest sanctions as 'unprecedented,' adding that 'together with the United States, we will force Vladimir Putin into a ceasefire.'
The Kremlin said it would try to 'minimise' the impact of the new measures and warned they would backfire.
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