EU Imposes Sweeping Sanctions On Russia’s Energy And Defense Sectors

The European Union announced a new sanctions package last week to put pressure on the Russian Federation for its war in Ukraine. The EU hopes that these sanctions will reduce Russia’s energy revenue. The penalties will also pressure companies and vessels transporting Russian crude. Additionally, the sanctions target refined oil products and lower the oil price cap for crude oil. Finally, there are penalties on Russian companies and banks, as well as Russia’s military-industrial complex.

“We are striking at the heart of Russia’s war machine,” stated European Commission President Ursula von der Leyen on her X account. “The pressure is on. It will stay on until [Russia] ends this war [in Ukraine].”

The new sanctions package was announced shortly after a European gathering in June, where the EU shared that it would seek to ban all Russian oil and gas imports by 2027. EU officials then moved forward with the proposal by implementing the new sanctions package in July.

Several European officials welcomed the move. For example, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas stated that the “EU will keep raising the pressure until Russia ends its war.” She added that this was one of the “strongest sanctions packages against Russia to date.”

Meanwhile, German Chancellor Friedrich Merz stated that the EU is “keeping up the pressure on Russia.” He added that the new package “weakens Russia’s ability to continue financing the war against Ukraine.” Similarly, French President Emmanuel Macron welcomed the EU’s new sanctions on Russia.

Having implemented this new package, the EU is hopeful that the United States will announce similar penalties. The U.S. Senate is weighing a new sanctions bill, but policymakers have yet to vote on the proposed legislation.

As EU officials work to persuade their American counterparts, the Russian Federation quickly condemned the move. Russian spokesman Dmitry Peskov claimed that the EU’s new sanctions package was “illegal” and “anti-Russian.” It remains to be seen how the Russian Federation will respond to the penalties imposed by the EU.

When the Russian Federation launched its full-scale invasion of Ukraine in February 2022, numerous countries around the world came together to punish Russia for its behavior. Several Russian banks were removed from the international financial messaging system, known as SWIFT. Russia was expelled from the Council of Europe and suspended from the United Nations Human Rights Council. Several countries announced that they would stop purchasing Russian oil and gas. Additionally, over 1,000 companies withdrew or suspended their business operations in Russia. Finally, hundreds of Russian politicians and oligarchs had their assets frozen or seized.

Despite these stiff penalties, Russia has continued its invasion of Ukraine. As a result, the international community has explored other avenues for punishing Russia for its war. One realm has been through Russia’s energy sector.

The EU Has Struggled to Move Beyond Russian Gas

When the full-scale war began, the EU considered imposing an embargo on Russian crude and petroleum products. The Europeans also discussed potential restrictions on Russian oil. Eventually, the EU announced that it would “plan to wean itself off Russian gas.”

On the surface, the EU has moved toward its goal of halting future energy purchases from Russia. A report by the European Commission states that EU imports of Russian gas “dropped from over 40% in 2021 to about 11% in 2024.” Additionally, the EU lowered price caps for crude oil and placed sanctions on vessels transporting Russian oil. The EU has also diversified its energy market to reduce its dependence on Russian energy.

But the EU’s energy situation with Russia is more complex. A Euronews report in 2023 found that the EU’s purchases of Russian liquefied natural gas (LNG) increased by 40% after Russia’s full-scale invasion began. In addition, a 2025 report by High North News found that the EU paid nearly 300% more for Russian LNG in 2024 than it had before the start of the full-scale invasion of Ukraine.

In other words, while the EU has introduced several sanctions packages targeting Russian banking, energy, and military-industrial sectors, the Russian Federation has continued its war in Ukraine. This is partly due to revenue earned from the Russian energy sector.

According to a July report by Al Jazeera, “oil is Russia’s main source of income.” Throughout the war, Russia has continued to generate billions of dollars in revenue by exporting oil around the world. The revenue earned from these energy transactions has helped stimulate the Russian economy, despite sanctions. The Al Jazeera report adds that energy sales help Russia “pour money into the [Russian] armed forces,” and this allows Russia to continue its full-scale invasion of Ukraine.

Current international penalties have failed to deter the Russian Federation from continuing its war in Ukraine. But the EU is hopeful that its new strategy will make a difference. It remains to be seen whether the new sanctions package will be sufficient to force an end to Russia’s war.