The latest round of economic sanctions against Russia is intensifying pressure on its financial and energy sectors. The United States, United Kingdom, and European Union have expanded restrictions, targeting major Russian banks and energy giants like Gazprom. The measures aim to cripple Russia’s ability to finance its war efforts while cutting off revenue streams that fuel its economy.
The sanctions package finalized on May 2, 2025, includes primary and secondary sanctions, meaning that not only Russian entities but also foreign firms doing business with sanctioned Russian companies could face penalties. The banking sector is particularly affected, with restrictions on international transactions and asset freezes hitting key financial institutions. The energy sector is also under siege, with sanctions on Russia’s shadow fleet of oil tankers, making it harder for Moscow to bypass existing restrictions.
The impact on Russia’s economy is becoming more visible. Inflation has surged past 10 percent, and the ruble continues to weaken. The EU’s latest sanctions package, adopted on May 20, 2025, further restricts Russia’s access to battlefield technologies and expands the list of sanctioned entities. The UK has also taken aggressive steps, sanctioning 100 oil tankers linked to Russia’s shadow fleet, which has transported over $24 billion worth of cargo since early 2024.
Russia has proven resilient, finding alternative trade routes and financial mechanisms to bypass restrictions. However, the growing pressure on its banking and energy sectors suggests that the cost of evading sanctions is rising. Western officials believe that sustained economic pressure could force Russia to reconsider its war strategy, but the Kremlin remains defiant.
Sources
https://enlargement.ec.europa.eu/news/eu-adopts-17th-sanctions-package-against-russia-2025-05-20_en