European Union Adopts 18th Package of Sanctions Against Russia – Key Highlights

By: Michael Ruck, Rosie Naylor, Petr Bartoš, and Laura Scott

On 18 July 2025, the European Union adopted its 18th sanctions package targeting Russia in response to its continued aggression in Ukraine (the Package). This wide-ranging set of measures builds on previous rounds of sanctions and aims to increase pressure on Russia by targeting its energy revenue, banking sector, military capabilities, and circumvention tactics. The Package also includes symbolic steps to hold Russia accountable for crimes against Ukrainian children and cultural heritage.

The following is a summary of the Package, which is discussed in greater detail in our client alert found here.

Five Key Measures

Russia’s Energy Revenues

Three amendments and additions have been made to the Package:

• A major addition to the package is a reduction in the G7 price cap on Russian crude oil – from US$60 to US$47.60 per barrel. This measure is intended to reduce Russia’s oil income, though this hinges on tighter enforcement.
• To close a key loophole, the EU has also banned the import of refined petroleum products made from Russian crude—even if processed in third countries.
• Additionally, a full ban has been imposed on the Nord Stream 1 and 2 pipelines, aiming to prevent their future use or maintenance.

Russia’s Banking Sector

The EU added 22 Russian banks to its transaction ban list, raising the total to 45. The Russian Direct Investment Fund (RDIF) and its network were also sanctioned to limit Russia’s access to global finance. The EU also banned the export of certain banking software to Russian institutions.

Russia’s Military-Industrial Complex

The EU has imposed €2.5 billion worth of new export bans on dual-use goods, including advanced electronics and machinery.

Anti-Circumvention Measures

The Package has also added 105 vessels – mainly oil tankers – to the EU sanctions list, now totalling 444 vessels, aiming to disrupt Russia’s shadow fleet. The EU also sanctioned 14 individuals and 41 entities, including those outside Russia (notably four in Turkey and seven in China and Hong Kong) involved in sanctions circumvention.

Accountability for Russian Crimes

Further, individuals involved in the forced deportation and indoctrination of Ukrainian children have been sanctioned, bringing the total to over 80. The EU also listed a Russian propagandist tied to the manipulation of Ukrainian cultural heritage.

Legal Protections for EU Member States

To prevent Russian entities from exploiting investment treaties, the package includes measures shielding EU member states from investor-state arbitration claims, especially those challenging sanctions under bilateral agreements.

Conclusion

The Package deepens the EU’s commitment to countering Russia’s aggression and reinforces sanctions enforcement. More than ever, the EU is signalling that its sanctions strategy will evolve to meet the shifting tactics of the Russian state and its enablers.

For further information, please see our corresponding alert.