Latvia: 18th package of sanctions confirms EU's united stance to support Ukraine while increasing pressure on Russia

On 18 July 2025, at the General Affairs Council in Brussels, the European Union approved the 18th package of sanctions against Russia, imposing significant sector-specific restrictive measures and targeted individual sanctions. The sectoral sanctions on Russia include further restrictions in the energy and financial sectors, as well as in trade. 

The Parliamentary Secretary of the Ministry of Foreign Affairs, Artjoms Uršuļskis, addressed the General Affairs Council emphasizing: “The 18th round of sanctions is yet another confirmation that, despite the diversity of opinions and differing dynamics, the EU is united in its shared goal – to support Ukraine by increasing pressure on Russia, and to reduce Russian aggression outside the EU borders. The pressure must continue to be strengthened, including by devising the 19th sanctions package.”

The energy sector: restrictions on transactions with the Nord Stream 1 and Nord Stream 2 projects have been included; the oil price cap has been decreased from USD 60 to USD 47.6 per barrel and will be reviewed regularly to align with the average oil price on the market; imports of refined Russian oil products into the European Union are prohibited; and 105 more Russian shadow fleet ships have been subject to sanctions – bringing up the total to 447 ships.

The financial sector: the sanctioned Russian banks previously disconnected from SWIFT are now subject to a full transaction ban, and 22 more Russian banks have been listed. In total, 45 banks are now on the EU sanctions list. The sanctions also include two Chinese banks connected to SPFS (Russia's equivalent of the SWIFT financial transaction system). Additional restrictions have been imposed on cryptocurrencies. Further restrictions have been set on the Russian Direct Investment Fund, its subsidiaries, as well as entities that invest in and support it.

Trade restrictions: the list of goods now banned from being exported has been expanded – components of certain technologies, chemicals, several metals and plastics. Several more Russian and third-country companies have been listed based on their evasion of sanctions or their support for the Russian military industry.

A solution has been reached that will help prevent the circumvention of sanctions through transiting dual-use goods through Russia.

Individual sanctions have been imposed on 55 more individuals and legal entities. In total, more than 2,500 individuals are currently subject to sanctions under this framework.

The 18th package of sanctions provides for further alignment of sanctions against Russia and Belarus, especially in the area of trade restrictions. Eight more legal entities are subject to sanctions under the Belarusian framework. In total, more than 360 individuals are currently sanctioned.

Sectoral sanctions will take effect on the date following the day they are published in the EU Official Journal (provisionally on 18 or 19 July), while individual sanctions – on the day they are published, i.e., 18 July.