The European Union has approved its 18th and most stringent package of sanctions against Russia, targeting the country's vital energy, banking, and military sectors in response to the ongoing war in Ukraine. Central to the new measures is a significant lowering of the price cap on Russian oil exports, aiming to slash Moscow's revenues and limit its ability to finance the war. The sanctions also include bans on petroleum products refined from Russian crude and restrictions on Russian banks. These moves have sparked tensions with major importers like India, whose refiners now face stricter payment rules and reduced margins, and have prompted Russia to retaliate by expanding its own sanctions list. While oil prices have reacted with volatility, experts question whether the new caps will meaningfully curb Russian crude flows, as countries like China and India continue to buy Russian oil.
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