Photo by European Parliament on Creative Commons
Since the second Trump administration, tariffs have been imposed on countries around the globe and the international market, especially on one of the US’s greatest adversaries, Russia. However, as Russia continues to solidify its role as a global pariah, it seems that the US isn’t the only country taking active resistance. Sanctions have become a global effort. Yet, there is still quite a way to go before these sanctions truly see fruitful results.
On July 19th, 2025, the European Union (EU) officially proposed the 18th Sanctions Package, targeting Russian banks and the energy sector. Specifically, the EU has reduced commerce and economic activity with Russia through the Nord Stream, the main gas pipeline transporting gas from Russia to European countries beneath the Baltic Sea. The Nord Stream has efficiently facilitated mutual sustainability for all actors involved, including its ability to account for two-thirds of Germany’s energy imports in 2021.
With the ongoing conflict in Ukraine and continuous condemnation of Russian actions on the international scale, the previous economic success of the Nord Stream for the country’s economy has started to fade. Considering that the EU accounts for 51% of Russia’s natural gas exports, the 18th Russian Sanctions Package poses another threat to any Russian economic prosperity, potentially causing the loss of the country’s most essential market for gas and its energy sector.
Despite the clear implications of the sanctions package, the EU still faces numerous challenges regarding the proposal’s enactment and long-term success. Past unilateral sanctions imposed by the EU and Western countries failed, struggling to enforce true action against the adversary. In light of new changes, the EU has some options to mitigate such challenges:
1: Finding a New Reliable Source for Gas/Oil
Internally, the EU has faced controversy amongst its members about passing the sanctions package. Russia is not the only actor benefiting from natural gas exports; the European countries do as well. With extensive gas pipeline infrastructure like the Nord Stream and low production costs, Russian gas on the international market is sustainable for the EU economy. Production costs of oil per barrel in the US, the EU’s second-largest exporter of oil, are over twice the amount of Russia’s, resulting in high costs for countries. With this concern, some EU countries have shown skepticism about the proposal. Already, Hungary and Slovakia continue delaying the implementation and discussions about passing the sanctions package. In fact, Hungarian Prime Minister Viktor Orban recently commented on social media that “Sanctions [on Russia] have pushed Europe into an energy crisis,” advocating for the eradication of sanctions in order to ensure a sustainable source of energy and resources.
The EU can still mitigate this issue: by diverting reliance away from Russian gas. Specifically, the EU should increase investments in US oil and infrastructure for exporters like Norway to improve countries’ abilities to enhance international presence in the natural gas market. Since the start of the Ukraine-Russia war, the EU has already started making progress towards expanding trade with the US, showcasing the decreased reliance on Russia. A study released by the Council of the European Union quantifies that as Russia’s share of EU imports of gas has dropped by 29% from 2021-2024, the US’ share of gas imports has more than doubled. Similar to how Russia lowered production costs over time, the rising presence of other natural gas exporters will improve other countries’ infrastructure and abilities to efficiently produce natural gas for lower prices.
Implementing such actions would allow the EU to overcome a couple of main barriers. First, the EU can supply countries with a reliable source of energy without funding the adversary that has invaded and gone to war with Ukraine for the past few years. Moreover, this will move the EU closer to achieving unanimous consent within the organization of countries to ensure a peaceful passing of the sanctions package and future actions regarding Russia and its allies.
2: Implementing Stringent Measures on All Actors
When it comes to sanctions, Russia is not the only actor at play; it also involves other allies that assist Russian actions. This has become a pressing issue that the EU is willing to mitigate. A critical detail outlined in the new sanctions proposal is the “transaction ban on financial operators in third countries that finance trade to Russia, in circumvention of sanctions.”
Historically, this topic has been controversial in the EU due to its long lasting economic and geopolitical impacts. Specifically, China, a key ally of Russia, has essential trade relations with the EU, amounting to over 200 billion dollars of exports. Many EU countries are reluctant to embroil countries like China into the sanctions package as it could potentially damage the long built up resistance of the EU economy and its economic collaborations.
The change in historical conversations within the EU regarding the involvement of third countries signifies a step forward to ensuring the successes of the 18th Russian Sanctions Package in a way that is distinct from previous methods of addressing issues with Russia.
At the end of the day, Russia will continue to fulfill its political agenda and ensure dominance both economically and politically. Regardless, effective long-term planning and enforcement strategies will allow Western and European countries to mitigate past issues with adversaries and their future actions.
Be First to Comment