The European Union’s Special Envoy for Sanctions, David O’Sullivan, said that the restrictions imposed on Russia are having a significant impact on the Russian economy. According to him, the sanctions have already led to a noticeable distortion of the Russian economy in favour of the military sector, which could make it unstable as early as 2026.
In an interview with The Guardian, O’Sullivan noted that the EU has imposed an unprecedented 19 rounds of sanctions since 2022, covering more than 2,700 individuals and entities. He stressed that the measures are not a ‘silver bullet,’ but that circumventing them is becoming increasingly difficult, and Russia’s revenues from oil and other resources are declining significantly. ‘I am quite optimistic: the sanctions have really had a strong impact on the Russian economy,’ the envoy said.
Official European Commission documents emphasise that the sanctions are aimed at weakening the Kremlin’s ability to finance the war, as well as creating economic and political costs for the Russian elite. The EU is coordinating measures with its allies (the US, the UK, Japan and others) to minimise circumvention through third countries. In particular, the price cap on Russian oil has recently been lowered to $44.10 per barrel, and phased bans on imports of Russian gas and LNG have been introduced.
The EU Council has extended the sanctions until 31 July 2026, stating that they will remain in force as long as Russia’s ‘illegal actions’ continue. A 20th package is expected to be adopted in the near future, including new restrictions on the ‘shadow fleet’ of tankers.