EU agrees on far-reaching sanctions against Russia

After weeks of negotiations, the EU member states have adopted a new, comprehensive package of sanctions against Russia . It is now the 18th of its kind since the start of Russia's war of aggression against Ukraine . EU foreign policy chief Kaja Kallas confirmed the agreement, which was reached in Brussels after the end of a blockade by Slovakia .

"The EU has just approved one of its toughest sanctions packages against Russia to date," Kallas declared. "We will continue to increase the pressure so that an end to the aggression becomes the only remaining option for Moscow," she wrote on social media.

Focus on oil, gas and financial system

The primary goal of the new sanctions is to further reduce Russia's revenues from oil exports to third countries and to severely impact the Russian financial sector. A key element: sanctions designed to preclude a possible restart of the Nord Stream 1 and Nord Stream 2 Baltic Sea gas pipelines.

Although three of the four pipes were destroyed in an attack in September 2022 , if repaired, they could once again generate billions in revenue for Russia from gas exports.

The agreement was originally sought in June, but was blocked by Slovak Prime Minister Robert Fico , who feared disadvantages for his country due to the EU's proposed ban on imports of Russian gas starting in 2028. Slovakia actually has a contract with the Russian gas company Gazprom until 2034.

The breakthrough was made possible by concessions to Bratislava: Slovakia received assurances that it would not face serious economic or financial consequences if the import ban on Russian gas were implemented. Unlike the sanctions package, this plan can be passed by majority vote – even against the will of individual states.

Compromise on oil price cap

Malta , Greece , and Cyprus also had reservations—particularly regarding measures to reduce revenues from Russian crude oil exports to third countries. They feared competitive disadvantages for their shipping companies if the so-called oil price cap on sales of Russian oil to third countries were drastically reduced.

The compromise now provides for the price cap to be adjusted regularly – in the long term, it should not be more than 15 percent below the average world market price.

Originally, a fixed cap of $45 per barrel was planned. This regulation applies to sales to third countries such as India , China , and Turkey . It was introduced in 2022 jointly with the United States , Canada , the United Kingdom , and Japan .

To enforce the price cap, companies that transport Russian oil below this limit or provide services such as insurance, financing or technical assistance will be sanctioned.

In addition, more than 100 ships of the Russian shadow fleet will no longer be allowed to call at EU ports. A total of around 450 ships are affected by the exclusion from European insurance, financing, and technical services.

Chinese companies also affected for the first time

Another key element of the new package is the decoupling of 22 additional banks from the SWIFT international financial system. For the first time, the measures also affect two Chinese financial institutions and several Chinese companies that are believed to have directly supported the Russian war.

The effectiveness of the sanctions against Russia remains controversial in the political debate. Critics doubt that they will have a lasting impact on President Vladimir Putin 's strategy. Supporters, however, argue that the punitive measures have significantly weakened the Russian economy and caused massive revenue losses for the state. Without the sanctions, they argue, Russia might have won the war long ago.

The formal Council of Ministers decision is expected later today. The new sanctions will come into force shortly thereafter.

pgr/se (dpa, afp)