EU set to roll out new Russia sanctions, targeting Nord Stream and oil cap

The Financial Times reported the information.

The 18th package of measures will be presented on Tuesday as part of efforts to increase pressure on Russia amid stalled peace negotiations with Ukraine.

According to sources familiar with the proposal, the package will include lowering the existing oil price cap from $60 to $45 per barrel and prohibiting the use of Russian energy infrastructure, including the two Nord Stream pipelines that deliver gas to Germany.

The oil price cap, introduced by the EU and other G7 countries in 2022 after Russia’s full-scale invasion of Ukraine, allows companies from participating countries to move Russian oil as long as it is priced below the set limit.

The new sanctions proposal would also target more Russian banks and vessels involved in the shadow fleet.

The package would include measures to protect Belgium from lawsuits by Moscow under the bilateral investment treaty between the two countries. Existing sanctions have already immobilized around €190 billion in Russian central bank assets at Euroclear, a Belgium-based securities depository.

The new sanctions package now needs to be discussed by EU governments and must be adopted with unanimous support. Slovakia and Hungary have indicated they might oppose the additional sanctions, complicating the negotiation process.

Two sources expressed optimism about reaching an agreement on the package by the end of July, after successfully persuading Hungary to back down from its opposition to previous sanctions packages.

The EU is also considering adding Russia to its “gray list” of countries with weak money laundering controls.

This new proposal comes as U.S. Senator Lindsey Graham advocates for additional sanctions against Russia. European Commission President Ursula von der Leyen met Graham last week and stated that if the EU and U.S. measures are combined, they would significantly amplify the impact of their sanctions.

However, it remains unclear whether U.S. President Donald Trump supports additional measures against Moscow, given his unsuccessful efforts to broker a peace agreement between Moscow and Kyiv.

Trump and von der Leyen are both scheduled to attend the G7 summit in Canada this weekend, where Ukraine will be on the agenda.