EU Unleashes Toughest Sanctions Yet on Russian Oil, Squeezing Global Energy Markets

The European Union has approved its 18th and most stringent package of sanctions against Russia, targeting the country's vital energy, banking, and military sectors in response to the ongoing war in Ukraine.

Central to the new measures is a substantial lowering of the price cap on Russian oil exports, aiming to further restrict Moscow's revenue streams. The sanctions also impact third-party countries and companies, notably affecting Indian refiners like Nayara Energy, which are now forced to change payment terms and face reduced margins. Despite these efforts, analysts suggest that major buyers such as China and India may continue importing Russian crude, potentially blunting the sanctions' effectiveness.

The move has triggered diplomatic tensions, with Russia retaliating and some EU member states, like Slovakia, initially resisting before accepting guarantees to protect their own energy interests.