EU proposes fresh sanctions on Russia’s oil, banks and Nord Stream

Published on
10/06/2025 – 14:30 GMT+2

The European Union has formally proposed a fresh round of sanctions against Russia to pressure the Kremlin into accepting a 30-day unconditional ceasefire in Ukraine, a step that Western allies consider an indispensable prelude to serious peace negotiations.

If approved by member states, it would mark the 18th package of sanctions since February 2022, the largest regime ever imposed by the bloc.

The latest proposal, unveiled on Tuesday by European Commission President Ursula von der Leyen and High Representative Kaja Kallas, expands the blacklist of Russian banks and “shadow fleet” tankers. So far, Brussel has targeted over 350 vessels from the poorly kept fleet, which has been accused of engaging in sabotage and vandalism.

The plan also features a ban on the Nord Stream pipelines that connect Russia and Germany underwater. The pipelines are currently non-operational and Berlin has ruled out the prospect of re-starting gas transit after the war comes to an end.

The most notable element of the proposed package is a downward revision of the price cap on Russia’s seaborne oil, which was established at G7 level in December 2022.

The cap was set at $60 per barrel of crude and has remained unchanged since then, despite ample fluctuations in Russia’s trade and evidence of circumvention. The Nordics and the Baltics have long called for a revision to reflect market dynamics.

In theory, the EU could pass new legislation to bring down the level of the cap on its own in an attempt to further squeeze Moscow’s profits. However, doing so without the participation of the United States could create a cacophony and weaken the initiative, which is supposed to have worldwide effect.

Until now, Donald Trump has refused to apply new sanctions against Russia, even if his rhetoric towards Vladimir Putin had hardened over the slow pace in negotiations and the continued barrage of attacks against Ukrainian cities. Trump’s position has driven a wedge across the Western front, with the EU, the UK and Canada moving ahead with fresh restrictions while Washington takes a step back.

The tensions in the alliance will come to the fore on Sunday during a G7 summit in Canada, where the revision of the price cap will be high on the agenda.

Meanwhile, EU officials and diplomats insist on piling extra pressure on the Kremlin regardless of the course of action that the White House chooses to take. Trump’s direction, though, could influence deliberations in Brussels, as unanimity among the 27 member states is required to approve the 18th package.

Hungary and Slovakia have in recent months ramped up their criticism against sanctions, arguing they cause more damage to the bloc’s economy than to Russia’s.

Earlier this year, Hungary threatened to veto the renewal of all sectorial sanctions, an against-the-clock experience that prompted officials to start working on legal shortcuts, particularly with a view to protecting the estimated €210 billion in Russia’s frozen assets.

Last week, Slovakia’s parliament narrowly passed a resolution urging the government to oppose further trade restrictions against Russia.

“If there is a sanction that would harm us, I will never vote for it,” Slovak Prime Minister Robert Fico said after the vote in parliament. “I am interested in being a constructive player in the European Union, but not at the expense of Slovakia.”

Still, for all their antagonistic talk, neither Hungary nor Slovakia has gone as far as completely preventing the adoption of a new package of sanctions.