The European Commission is set to propose a sweeping new sanctions package against Russia, including a ban on Nord Stream energy infrastructure and a reduction in the Russian oil price cap, in what would be the 18th round of EU punitive measures since the war in Ukraine began.

Nord Stream Pipelines and Oil Price Cap in Focus

According to sources familiar with the draft, the proposed package will prohibit the use of the Nord Stream 1 and 2 pipelines across EU territory. Although both pipelines are already inactive—one damaged in an unsolved 2022 sabotage and the other suspended—the symbolic ban signals the EU’s hardening stance against Russian energy leverage.

The European Commission will also seek to lower the G7-backed oil price cap on Russian crude from $60 to $45 per barrel. Under this regime, Western firms may only handle Russian oil trades if the price remains below the threshold, a tool meant to undercut Moscow’s war revenues.

Additional Targets: Banks, Tankers, and Legal Shields

The sanctions would expand to include further Russian financial institutions and tankers operating as part of the so-called “shadow fleet”—ships used to secretly move oil in violation of sanctions.

The package includes legal safeguards to shield Belgium from litigation by Russia under a bilateral investment treaty. This stems from the EU’s freezing of nearly €190 billion in Russian central bank assets held at Belgium-based clearinghouse Euroclear.

Political Hurdles and Transatlantic Coordination

While Slovakian and Hungarian resistance may complicate consensus, officials express optimism the package will pass by late July. Commission President Ursula von der Leyen said the EU plan, in tandem with new U.S. proposals being promoted by Senator Lindsey Graham, would “sharply increase the joint impact of our sanctions.”

However, uncertainty remains over whether U.S. President Donald Trump will support further American measures, amid his push to force Russia and Ukraine into a negotiated settlement.