THE EUROPEAN UNION ADOPTS THE 18TH SANCTIONS PACKAGE AGAINST RUSSIA AND BELARUS

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On July 18, 2025, the Council of the European Union approved the 18th sanctions package in response to Russian military aggression against Ukraine. This new set of measures intensifies economic, energy, financial, and technological pressure on Russia and Belarus in an effort to restrict their ability to sustain conflict and reaffirm the EU’s commitment to Ukraine’s sovereignty and territorial integrity.

The package introduces 55 new designations, including 14 individuals and 41 entities, responsible for actions that threaten Ukraine’s stability, independence, and security. With these additions, the total number of individuals and entities sanctioned by the European Union since 2014 now exceeds 2,500.

Measures in the energy sector
Among the most significant provisions is the reduction of the maximum price for Russian crude oil transported by sea. This limit is adjusted from $60 to $47.60 per barrel, in line with current international market prices. An automatic review mechanism is also established to maintain the effectiveness of the measure.

The list of sanctioned vessels is also expanded with the addition of 105 new vessels, bringing the total to 444. These measures include prohibiting access to European ports and restricting services related to maritime transport.

The EU also prohibits the import of refined petroleum products derived from Russian crude oil from third countries, with the sole exceptions being Canada, Norway, Switzerland, the United Kingdom, and the United States. This clause seeks to close indirect routes for Russian oil to enter the European market. Additionally, a total ban on commercial transactions related to the Nord Stream 1 and 2 gas pipelines is established.

Financial Restrictions
The package includes the addition of 22 new Russian banks to the list of entities subject to the ban on using specialized financial messaging services within the EU, bringing the total number of affected banks to 45.

New restrictions are also introduced on the export, sale, and supply of software and financial management systems to the Russian banking sector, which seeks to hinder the technological modernization of its financial infrastructure.

Defense and Technology Sanctions
Regarding the Russian military-industrial complex, several entities providing technical equipment and services are sanctioned, including three companies located in China. In addition, export restrictions are imposed on 26 entities involved in activities with potential military applications, 11 of which are based in third countries such as China, Hong Kong, and Turkey.

The package also includes a ban on critical exports to Russia worth more than €2.5 billion. These restrictions target high-tech components, such as precision CNC machinery, chemicals used in propellants, and other sensitive materials for military applications.

Strengthening European Commitment
With this new extension of the sanctions regime, the European Union strengthens its commitment to respect for international law and its support for Ukraine. Furthermore, it is intensifying its strategy to close potential avenues for evading the restrictive measures, particularly through actors in third countries.

At Feliu N&I SL, we will closely monitor the evolution of these provisions and their impact on the international activity of European companies, paying particular attention to the regulatory, commercial, and logistical implications arising from the current geopolitical context.

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