Slovakia and Malta stall EU’s 18th sanctions package against Russia

The European Union is encountering obstacles in adopting its 18th sanctions package against Russia, with Slovakia and Malta expressing reservations during discussions at ambassador level (Coreper) on 13 July.

The EU’s 18th sanctions package against Russia, proposed on 10 June, targets Russia’s energy, banking, and military sectors to intensify economic pressure amid its ongoing war against Ukraine. The package includes a first-ever transaction ban on the Nord Stream 1 and 2 pipelines, a reduction of the G7 oil price cap from $60 to $47 per barrel with a new “floating mechanism” setting the price 15% below the six-month average, and a ban on importing refined petroleum products made from Russian crude, particularly from India and Turkey, to curb Moscow’s energy revenues, which still account for one-third of its government income.

Additionally, it blacklists 77 more “shadow fleet” vessels, bringing the total to 419, and imposes export bans worth over €2.5 billion on critical technologies, machinery, metals, plastics, and chemicals to hinder Russia’s military-industrial complex. The package also targets 22 Russian banks with a full transaction ban, extends restrictions to financial operators in third countries like China and Belarus aiding sanctions circumvention, and sanctions the Russian Direct Investment Fund and 22 companies supporting Russia’s war efforts, aiming to further strain its economy, already burdened by a 10% inflation rate and a plummeting National Wealth Fund.

Slovakia’s energy concerns and Malta’s economic interests underscore the complexities of aligning diverse national priorities. As discussions continue, the EU aims to balance these concerns while maintaining pressure on Russia through targeted economic measures.

Slovakia remains steadfast in its opposition, demanding assurances from the European Commission to mitigate potential economic losses from phasing out Russian gas by 2028. A diplomatic source indicated that Slovakia has agreed to the new measures in principle but continues to seek guarantees to safeguard its energy interests.

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Malta has raised objections to lowering the price cap on Russian oil, citing its significant tanker fleet and reliance on oil transportation, a concern shared by Greece and Cyprus. During the Coreper meeting, Malta alone insisted on rejecting the proposal to reduce the oil price ceiling, highlighting its economic dependence on maritime activities.

Proposed oil price cap mechanism

The European Commission has proposed a dynamic price cap for Russian crude, set at 15% below the average market price over the previous three months, with revisions every six months. Based on recent data, the initial cap would be approximately $47 per barrel, calculated from the average price of Russian crude over the past 22 weeks. This mechanism aligns with the Group of Seven (G7) price cap, initiated in December 2022, which restricts trade in Russian crude above $60 per barrel and prohibits shipping, insurance, and reinsurance services for non-compliant cargoes.

According to Reuters, EU ambassadors are nearing a consensus on the sanctions package, with all elements reportedly agreed upon except for one member state’s technical reservation on the new oil price cap.

Sources, speaking anonymously due to the confidential nature of the talks, expect a full agreement, ahead of a foreign ministers’ meeting in Brussels, where the package could be formally approved.

The proposed sanctions package, introduced in early June targets Moscow’s energy revenues through measures such as a ban on transactions with Russia’s Nord Stream gas pipelines and its financial network used to evade sanctions. The package also includes listing a Russian-owned refinery in India, two Chinese banks, and a flag registry associated with Russia’s shadow fleet of oil tankers.

Serbia’s non-compliance

The EU’s Office of the High Representative for Foreign Affairs and Security Policy noted Serbia’s continued failure to align with EU sanctions against Russia, as reported by RFE/RL.

Unlike other Western Balkan countries, Iceland, Liechtenstein, Norway, and Ukraine, Serbia has not adopted any EU sanctions, despite its status as an EU membership candidate. This non-compliance, coupled with Belgrade’s close ties to Moscow, has stalled progress in Serbia’s EU Accession process, particularly in opening negotiation chapters.

The EU’s 18th sanctions package represents a critical step in addressing Russia’s actions in Ukraine, but unanimous approval among member states remains a challenge.

Other sources: Reuters, BETA, RFE/RL. Edited by ak. and g.g.

Caption: EU Ministers of Foreign Affairs meet on 15 July 2025 in Brussels. The meeting is chaired by Kaja KALLAS, EU High Representative for Foreign Affairs and Security Policy, 15 July, European Council Newroom