On July 18, 2025, the Council of the European Union approved the 18th sanctions package against Russia, strengthening efforts to limit Russia's ability to continue the war in Ukraine. This package is considered one of the strictest adopted so far and introduces new restrictions in key sectors of the Russian economy, including energy, trade, transportation, financial services, and shipping. Additionally, measures target third-country entities that facilitate the circumvention of existing sanctions along with provisions to protect EU member states from international arbitration claims.
Restrictive Measures in the Financial Sector
In the financial sector, the package enforces a complete ban on transactions with 45 Russian banks, extending previous restrictions. At the same time, rules aim at preventing sanctions evasion through third countries or alternative payment channels such as cryptocurrency service providers, are strengthened. For example, the provision of crypto-asset services to Russian individuals and entities is now fully prohibited, regardless of transaction amount or type.
Of particular importance is the full restriction on transactions with the Russian Direct Investment Fund (RDIF) and its subsidiaries. RDIF is Russia's main state investment fund, supporting large-scale projects and investments vital to the country's economy and military industry. This ban significantly limits Russia's ability to finance critical sectors through international capital.
Furthermore, the export of technologies related to interbank
payment infrastructures and software supporting international
settlement platforms like SWIFT is prohibited. Additionally, the
provision of specialized banking software to Russian financial
institutions is banned, substantially impacting their operational
capabilities.
These new regulations considerably increase compliance
requirements for businesses operating internationally, especially
in trade, shipping, financial services, and investments. It is
therefore essential that all parties involved in cross-border
transactions carefully verify their counterparties.
Implications for Businesses and Compliance Recommendations
It is strongly recommended that every business or professional engaged in international transactions seeks timely legal advice to ensure that they do not engage with individuals or entities listed on sanctions lists maintained by the European Union, the United States (OFAC), the United Nations, or other national and international authorities. Failure to comply with these sanctions can lead to severe consequences, including administrative fines, criminal penalties, exclusion from banking services and international markets, and significant damage to a company's reputation.
Conclusion
The 18th sanctions package demonstrates that the international regulatory environment is becoming increasingly strict and complex. Continuous updates, strict compliance, and professional legal support are now essential tools for maintaining the legality and security of business activities.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
