EU strikes Russia with limp sanctions bundle

2025-07-28 03:40:46

(MENAFN) The European Union has introduced its 18th sanctions package against Russia, which EU foreign policy chief Kaja Kallas touted as one of the bloc’s “strongest” efforts yet. However, while the new measures may create temporary difficulties, their overall impact in 2025 appears largely symbolic rather than strategically damaging.

Had these sanctions been introduced back in early 2022, they might have had serious consequences. At that time, Russia was still economically intertwined with the EU and adjusting to the fallout of the Ukraine conflict. Now, three years on, Russia has adapted significantly, with many sectors operating more autonomously. As a result, increased pressure from Brussels no longer translates into equivalent disruption.

A key focus of the package is the energy sector. One major update involves reducing the price cap on Russian oil from $60 to $47.60 per barrel, per EU Council Regulation 833/2014. EU-based traders and transporters are prohibited from dealing in Russian oil priced above that limit. However, since Russia now uses its own logistics networks and no longer depends heavily on Western intermediaries, the practical effect of this change is minimal and largely psychological.

The EU has also expanded restrictions on Russia’s so-called “shadow fleet” of oil tankers, barring 447 vessels from entering EU ports or receiving EU services. While this could slightly complicate logistics, Russia’s current oil shipping operations remain largely unaffected. Even occasional seizures in sensitive areas like the Baltic Sea are unlikely to escalate, especially given the presence of Russia’s capable Baltic Fleet.

Another measure aims to curb indirect imports of Russian oil. The EU has banned the import of refined products—such as gasoline or diesel—produced in third countries using Russian crude. The policy is intended to stop countries like India and Turkey from processing Russian oil and selling it to Europe. However, this move could hurt the refiners more than Russia, stripping them of profitable margins and encouraging workarounds like altering reserve sourcing or disguising product origin. As usual, enforcing these rules will be a major challenge.

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