EU Nears Deal on 18th Sanctions Package Against Russia, Eyes Lower Oil Price Cap

European Union envoys are close to finalizing an 18th package of sanctions against Russia in response to its ongoing invasion of Ukraine, with agreement expected as early as Monday, according to four EU sources familiar with the discussions.

The new measures, discussed in detail during a meeting on Sunday, include a revised and lower price cap on Russian oil exports. While all elements of the package have been agreed in principle, one member state — reportedly Slovakia — still maintains a technical reservation regarding the proposed changes.

Officials said the bloc had reached consensus on introducing a dynamic price mechanism, replacing the current fixed cap. Under the European Commission’s proposal, the cap would be set at 15% below the average global crude price over the previous three months. Based on recent figures, the initial cap would sit around $47 per barrel. In a compromise, the cap would be reviewed every six months rather than every three.

The G7-led price cap mechanism, first implemented in December 2022, bars companies from providing shipping or insurance services for Russian crude if it is sold above the set limit. With falling global oil prices, the current $60 cap has become increasingly ineffective, prompting the EU and UK to push for a downward revision.

Slovakia’s Concerns, But No Veto

Slovakia, which had held up the sanctions package over concerns about future access to Russian gas, has reportedly dropped its opposition after receiving assurances from the European Commission. Sanctions packages require unanimous approval from all 27 EU member states.

Additional Targets and Expanded Measures

The package also includes measures aimed at tightening enforcement and closing loopholes. These include:

• A ban on transactions involving Russia’s Nord Stream gas pipelines and related infrastructure

• Sanctions on a Russian-owned oil refinery in India

• Blacklisting of two Chinese banks accused of aiding Russia’s sanctions evasion

• Targeting of a flag registry used by Russia’s shadow fleet of oil tankers employing “flags of convenience” to bypass shipping restrictions

The full package is expected to be formally approved at the EU foreign ministers’ meeting in Brussels on Tuesday.

The sanctions form part of the EU’s broader strategy to choke off Moscow’s ability to fund its war machine, with a focus on energy exports — a major revenue source for the Kremlin.