EU approves new Russia sanctions

The European Union on Friday agreed an 18th package of sanctions against Russia over its war in Ukraine, including measures aimed at dealing further blows to the Russian oil and energy industry, reports reuters.

The package aims to lower the G7's price cap for buying Russian crude oil to $47.6 per barrel, diplomats told Reuters.

"The EU just approved one of its strongest sanctions packages against Russia to date," EU foreign policy chief Kaja Kallas said on X.

"We will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow."

Yet Russia has so far managed to sell most of its oil above the previous price cap as the current mechanism makes it unclear who must police its implementation, and traders doubt the new EU sanctions will significantly disrupt Russian oil trade.

The package also has a ban on transactions related to Russia's Nord Stream gas pipelines under the Baltic Sea and on Russia's financial sector.

Kallas said the sanctions also targeted 105 ships in Russia's "shadow fleet", the term used by Western officials for ships that Moscow uses to circumvent oil sanctions, and "Chinese banks that enable sanctions evasion".

She did not name the banks.

Ukrainian President Volodymyr Zelenskiy called the decision "essential and timely" as Russia intensifies its air war on Ukrainian cities and villages.

And Foreign Minister Andrii Sybiha said: "Depriving Russia of its oil revenues is critical for putting an end to its aggression."

The Group of Seven Western economic powers have tried to impose a price cap on purchases of Russian oil price since December 2022.

It aims to ban trade in Russian crude bought at a higher price by prohibiting shipping, insurance and re-insurance companies from handling tankers carrying such crude._Agencies.