EU's 8th package of measures against Moscow includes price cap on crude oil

An eighth package of European Union sanctions against Russia that target the economy and individuals has taken effect, the Council of the European Union said on Thursday, with the measures including a price cap on oil imports and import bans worth 7 billion euros ($6.85 billion).

"The agreed package includes a series of biting measures intended to reinforce pressure on the Russian government and economy, weaken Russia's military capabilities," the Council said in a statement.

The measures include more restrictions in trade with Russia in steel and technology products, along with a price cap for Russian seaborne crude deliveries to third countries through European insurers in an action that is meant to align the bloc with the actions of the United States.

The oil cap was watered down to give exemptions to seafaring countries like Greece, Malta and Cyprus, EU diplomats said, with some doubting its practical feasibility or efficiency.

The sanctions were agreed by EU member states on Wednesday, and were officially formalized on Thursday as no EU countries raised last-minute objections.

"As concerns trade, the EU is extending the import ban on steel products that either originate in Russia or are exported from Russia," the statement said. "Further import restrictions are also imposed on wood pulp and paper, cigarettes, plastics and cosmetics as well as elements used in the jewelry industry such as stones and precious metals, that altogether generate significant revenues for Russia."

Former German chancellor Angela Merkel on Thursday said Europe can achieve a lasting peace only with the involvement of Russia. Otherwise the Cold War would continue, she was reported by the DPA news service as saying.

Russian President Vladimir Putin on Thursday demanded economic measures in response to Western sanctions.

"It is important to understand that the sanctions pressure on Russia will only increase," Putin said at a government meeting on economic issues via video link.

Putin asked the government and the central bank to ensure a sustainable recovery of macroeconomic indicators.

Export-oriented sectors remain under pressure, primarily those targeting European countries, and it takes time for Russian exporters to switch to other markets, he noted.

Meanwhile, Putin pointed out some positive trends, as industrial production had returned to the level of the previous year.

The worst-hit industries, such as the automotive industry and metallurgy, are gradually recovering and agriculture also shows good dynamics, he said.

Also on Thursday, Ukrainian President Volodymyr Zelensky met with visiting International Atomic Energy Agency Director-General Rafael Grossi to discuss the situation at the Zaporizhzhia nuclear power plant.

During the talks, Zelensky and Grossi talked about the IAEA mission to the nuclear plant and Putin's decree on Wednesday that designates the plant as Russian "federal property".

The Ukrainian leader also stressed the need for the resumption of the plant's operation for the energy security of Ukraine and Europe.

Xinhua contributed to the story.