Brussels' 18th sanctions package also reflects Brussels' frustration over the Russia-US thaw, Kirill Dmitriev has said

The European Commission's latest sanctions package, which targets the Russian Direct Investment Fund (RDIF), among other entities, is driven by the bloc's desire to prolong the Ukraine conflict, according to Kirill Dmitriev, the RDIF's CEO and a presidential investment envoy.

The 18th sanctions package, unveiled by EC President Ursula von der Leyen on Tuesday, targets Russia's energy exports, infrastructure, and financial sector. It includes measures against the RDIF, its subsidiaries, and investment projects in an effort to stop it from funding initiatives to "modernize the Russian economy." 

By going after RDIF, Russia's sovereign wealth fund, the EC acknowledges it is "an important channel" for strengthening Russia's industrial base, Dmitriev said in a statement.

Von der Leyen's remarks were "driven by the EU's desire to prolong the Ukraine conflict and its deep dissatisfaction with RDIF's efforts to restore Russia-US relations," as well as the fund's role in Moscow's peace initiatives, he added.

Dmitriev has played a prominent role in efforts to improve relations between Moscow and Washington, which reached its lowest point in decades under the administration of Joe Biden.

The official took part in high-level meetings in Saudi Arabia and visited Washington in April for talks on potential joint investment projects in rare earths and energy.

The EU's proposal also signals opposition to cooperation between Russian and European businesses, which the RDIF "actively supports in Russia," according to Dmitriev.

In a post on X on Tuesday, Dmitriev noted that Russia has "a number of joint investments with the leading EU companies" and said that the fund has "helped significantly" many European firms that continue to operate in the country.

The new sanctions package also proposes a ban on the use of Nord Stream gas infrastructure, a reduction in the oil price cap, and a halt to imports of all refined products derived from Russian crude.

The draft will now be debated by EU member states and must be approved unanimously to take effect. Previous rounds have faced pushback from countries such as Hungary and Slovakia, which argue the sanctions hurt the EU more than Russia. Slovak Prime Minister Robert Fico wrote on Facebook on Tuesday that Bratislava won't back the package unless the EU offers "a real solution to the crisis" that his country would face from a halt in Russian energy supplies.

Russia has rejected the Western sanctions as illegitimate and counterproductive. President Vladimir Putin has said the removal of sanctions is among the conditions for a settlement of the Ukraine conflict.