The European Union has formally adopted its 18th package of sanctions against Russia, effective from July 18, 2025. This circular from The London P&I Club outlines the key measures impacting the maritime and insurance industries.

​1. Vessel and Asset Freeze Listings:​​

• 105 vessels identified as part of Russia's "shadow fleet" are banned from accessing EU ports and receiving maritime services.
• Three LNG tankers operated by Mitsui O.S.K. Lines (MOL) were removed from the list after assurances they would not transport gas from Russian Yamal and Arctic-2 projects.
• 14 individuals and 41 entities have been added to the EU sanctions list, subjecting them to an asset freeze. These include entities linked to Coral Energy/2Rivers Group and India's Nayara Energy Ltd. (partly owned by Rosneft).

​2. Oil Price Cap Mechanism Overhaul:​​

• The price cap for Russian-origin crude oil has been reduced from 60to​∗∗​47.60 per barrel**, effective September 3, 2025, with specific wind-down periods for existing contracts.
• A new ​dynamic price cap mechanism​ is introduced. The cap will now be automatically set at 15% below the average market price for Urals crude over the previous six months, to be reviewed and updated every six months starting January 15, 2026.
• The UK has aligned, reducing its cap to $47.60/barrel effective September 2, 2025, with a 45-day wind-down period.
• The U.S., part of the G7 scheme, has not changed its cap. Price caps for Russian petroleum products remain unchanged.

​3. Expanded Trade Restrictions:​​

• A future ban is set: From January 21, 2026, the EU will prohibit the import, transport, or related insurance of refined petroleum products made from Russian oil in third countries (with exemptions for allies like the U.S. and UK).
• The list of goods restricted for export to Russia (due to potential enhancement of Russian industrial capacity) has been significantly expanded. It now includes specific commodity codes for molybdenum ores, various chemicals (fluorine, sulfur, cobalt oxides, titanium oxides), carbon, hydrogen, and articles of iron, steel, copper, and aluminum.
• Stricter controls are placed on exports of advanced technology to third countries if there is a suspicion the final destination is Russia.

​4. Financial Sector Sanctions:​​

• 22 additional Russian banks will be subject to a full transaction ban from August 9, 2025.
• The Russian Direct Investment Fund (RDIF) and its affiliates are also newly targeted by a transaction ban.

​5. UK-Specific Sanctions:​​

• The UK has designated 135 tankers as part of Russia's shadow fleet.
• It also sanctioned Intershipping Services LLC (operator of the Gabon ship registry) for registering shadow fleet vessels, and Litasco Middle East DMCC (trading arm of Lukoil). A temporary general licence allows for winding down transactions with Litasco until September 18, 2025.

​Conclusion and Advice:​​
The Club reiterates that insurance cover is not available for trades that breach sanctions. Members are strongly advised to conduct thorough due diligence on all parties, cargoes, and vessels involved in any trade with potential sanctions risk and to maintain detailed records of their investigations.