Russia faces additional economic restrictions with the adoption of the 18th round of sanctions by the European Union.

The European Union (EU) has taken a significant step in its ongoing efforts to counter Russia's aggression against Ukraine, adopting an 18th package of economic and individual restrictive measures against Moscow.

This latest round of sanctions aims to impact Russia's energy, banking, and military sectors, as well as trade with the EU. The measures include a full transaction ban on the Nord Stream 1 and 2 pipelines, and sanctions on Russian and international companies managing shadow fleet vessels, traders of Russian crude oil, and a major customer of the shadow fleet - a refinery in India with Rosneft as its main shareholder.

An import ban is being introduced on refined petroleum products made from Russian crude oil and coming from any third country, except for Canada, Norway, Switzerland, the United Kingdom, and the United States. The EU has also agreed further export bans worth more than €2.5 billion, including items for the development and production of Russia's military systems such as computer numerical control (CNC) machines and constituent chemicals for propellants.

In addition, the EU is expanding the transaction ban on third countries' financial and credit institutions and crypto-asset service providers that frustrate EU sanctions or support Russia's war of aggression against Ukraine. The ban on specialised financial messaging services is upgraded to a full transaction ban for 22 additional Russian banks.

The EU is also targeting Belarus, with the ban on specialised financial messaging services being upgraded to a full transaction ban and an embargo on imports of arms from Belarus being introduced. The latest package includes 55 listings, consisting of 14 individuals and 41 entities responsible for actions undermining or threatening Ukraine's territorial integrity, sovereignty, and independence.

The EU foreign policy chief, Kaja Kallas, stated that each sanction weakens Russia's ability to wage war and the EU will not back down in its support for Ukraine. The EU is also lowering the price cap for crude oil from USD 60 to USD 47.6 per barrel to curtail Russia's energy revenues.

The 26 new entities subject to stricter export controls for dual-use goods and technologies, based in China, Hong Kong, and Turkey, involved in evading export restrictions, particularly for unmanned aerial vehicles, are not publicly listed by name in available open sources. The Council is also imposing further full-fledged sanctions on suppliers of the Russian military industrial complex, including three entities based in China that sell goods used on the battlefield.

The existing transit ban via the territory of Russia is expanded to cover selected economically critical goods used for construction and transport. The transaction ban on third-country operators that circumvent oil-related prohibitions has also been widened.

The EU is establishing an instrument to extend such a ban to certain companies in which the Russian Direct Investment Fund (RDIF) has invested and to entities providing investment services or other financial services to the RDIF itself. A ban is imposed on carrying out any transaction with the RDIF and its sub-funds and companies.

The EU remains committed to its support for Ukraine and will continue to take decisive action against those who undermine or threaten its territorial integrity, sovereignty, and independence.