Announcement on the adoption of the 18th package of European measures (economic and individual) against Russia by the European Council, on 18/07/2025
Posted On 30 July 2025 | Press release
On the 18th of July, the EU has approved one of its strongest sanctions packages against Russia, in relation to the aggressive war waging against Ukraine, thus giving a clear message that Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war, while continuing its intensive global outreach efforts and participation in discussions affecting Europe’s security.
The Council has adopted the 18th package of economic and individual restrictive measures hitting hard on Russia’s energy, banking and military sectors, as well as trade with the EU, and ensuring accountability for Russia’s continued war of aggression against Ukraine. Furthermore, the Council complemented the package by agreeing further measures on Belarus.
With this package the Council has agreed on a significant set of 55 listings, consisting of 14 individuals and 41 entities, bringing the total number of individual listings to over 2,500. The relevant legal acts will soon be published in the Official Journal of the EU.
Energy
With this package, the EU is curtailing Russia’s energy revenues through a number of different measures. The EU is lowering the price cap for crude oil from USD 60 to USD 47.6 per barrel, since oil exports still represent one third of the Russian government’s revenues.
The EU is also imposing further sanctions across the shadow fleet value chain. An additional 105 vessels will be subject to bans (444 in total), which support the energy sector of Russia or which transport military equipment for Russia or stolen Ukrainian grain.
Full-fledged sanctions (asset freezes, travel bans, bans on providing resources) target Russian and international companies managing shadow fleet vessels, traders of Russian crude oil and a major customer of the shadow fleet – a refinery in India with Rosneft as its main shareholder.
Furthermore, the EU is introducing an import ban on refined petroleum products – excluding Canada, Norway, Switzerland, the United Kingdom and the United States – thereby preventing Russia’s crude oil from reaching the EU market through the back door.
The EU is also imposing a full transaction ban on Nord Stream 1 and 2 pipelines.
Lastly, the Council decided to end the exemption for oil imports from Russia to Czechia.
Banking Sector
The EU is upgrading the existing prohibition on providing EU-based specialized financial messaging services to certain Russian banks to a full transaction ban. This will apply to 22 additional Russian banks, on top of the 23 banks already subject to the ban.
The EU is expanding the transaction ban and simultaneously is lowering the threshold for sanctioning third-country financial and credit institutions and crypto-asset service providers that are frustrating sanction measures against Russia, supporting Russia’s war of aggression or are connected to the System for Transfer of Financial Messages (SPFS). The transaction ban on third-country operators that circumvent oil-related prohibitions has also been widened.
Additionally, a ban is imposed on carrying out any transaction with the Russian Direct Investment Fund (RDIF) and its sub-funds and companies, and extension of the ban to certain companies in which the RDIF has invested and to entities providing investment services or other financial services to the RDIF itself. This measure further limits Russia’s access to global financial markets and foreign currency.
Lastly, the Council is putting in place a new ban on selling, supplying, transferring and exporting software management systems and software with certain uses in the banking and financial sector.
Military industry
The Council is imposing further full-fledged sanctions on suppliers of the Russian military industrial complex, including three entities based in China, with the aim of further constrain Russia’s access to goods and technologies. Additionally, the package covers eight companies operating in the Belarusian military-industrial complex, which is supporting Russia’s war efforts.
Twenty-six new entities will be subject to tighter export restrictions concerning dual-use goods and technologies, including those that could contribute to the technological enhancement of Russia’s defense and security sector. Eleven of these entities are located in third countries other than Russia (seven in China and Hong Kong, and four in Turkey).
Additionally, the EU has agreed further export bans worth more than €2.5 billion. The list will now include items for the development and production of Russia’s military systems such as computer numerical control (CNC) machines and constituent chemicals for propellants. Furthermore, the existing transit ban via the territory of Russia is expanded to cover selected economically critical goods used for construction and transport.
Accountability
The Council is imposing sanctions on another individual actively involved in Russia’s “military education” of Ukrainian children. This brings the total number of listings in relation to the deportation and indoctrination of Ukrainian children to over 90. The package also lists several Russian proxies in occupied territories, including a person responsible for manipulating Ukrainian cultural heritage, another leading Russian businessperson and a prominent Russian propagandist.
Belarus
In addition to the eight new listings related to the Belarusian military complex, 18th package also further mirrors the measures imposed on Belarus’ trade withthose imposed on Russia.
Furthermore, the ban on specialized financial messaging services is upgraded to a full transaction ban and an embargo on imports of arms from Belarus is introduced.
Other
The EU is also introducing measures to protect member states from illegitimate Bilateral Investment Treaty (BIT) arbitration proceedings launched by Russian companies and individuals, including oligarchs and their proxies (i.e. damages recovery provision to be taken by member states, tailored non-recognition provision in the EU for those arbitration proceedings and an obligation on member states to act in BIT proceedings).