The detailed content of the European Union’s 18th package of sanctions against Russia has been unofficially disclosed in Brussels.

Source: European Pravda, citing a source in the Council of the EU

Details: A source provided further insights into the sanctions package, expanding on the general outline previously announced by the EU’s High Representative Kaja Kallas.

• The price cap on Russian oil has been reduced from US$60 to US$47,6 per barrel, with a dynamic review mechanism introduced to ensure effectiveness;
• A ban has been imposed on the importation of oil products refined from Russian crude in third countries (with certain exceptions including Norway, the UK, the US and Canada);
• A new ban on transactions related to Nord Stream pipelines has been introduced, including the provision of goods or services, effectively ending any future use of their infrastructure;
• Sanctions have been imposed on 105 additional vessels of Russia’s so-called shadow fleet, bringing the total number of targeted ships to over 400. At the same time, three Japanese vessels have been removed from previous sanctions lists.

Financial sector:

• The existing SWIFT-related sanctions have been expanded to a full transaction ban, adding 22 more Russian banks to the list, nearly doubling it;
• A ban on transactions with the Russian Direct Investment Fund, its investments, and financial institutions supporting those investments. Four Russian companies that received such investments have also been sanctioned;
• The criteria has been lowered for imposing sanctions on financial institutions in third countries that assist Russia in circumventing sanctions, particularly in relation to the oil sector or Russia’s defence industrial base.

Trade sector:

• Sanctions have been imposed on 26 more companies for helping Russia bypass sanctions, including 14 entities outside Russia: seven in China, three in Hong Kong, and four in Türkiye;
• Additional export bans have been introduced to limit Russia’s access to technologies used in its defence sector, including machine tools involved in the production of Iskander missiles;
• The transit ban has been extended to cover new categories of goods used in construction, transport and energy;
• The export ban list has been expanded to include certain products from the mechanical engineering sector, the chemical industry, as well as selected metals and plastics.

Background:

• On the morning of 18 July, the EU’s Committee of Permanent Representatives (Coreper) approved the long-delayed 18th package of EU sanctions against Russia, which had been stalled due to opposition from Slovakia and Malta.
• On the evening of 17 July, both countries informed the EU Council that they were ready to withdraw their objections.
• The package includes sanctions against 105 shadow-fleet vessels, a lower oil price cap and measures targeting banks and companies outside of Russia that are involved in supporting its war machine.