The European Union's ban on Russian oil product exports is slated to kick in on Feb. 5.
Sanctions imposed on Russian crude oil have so far "failed completely" and new price caps could prove immaterial as well, analysts told CNBC.
The 27-member bloc has already banned the purchase and import of sea-borne Russian crude oil since December.
None of them really understand oil markets," Paul Sankey, president and lead analyst at Sankey Research, told CNBC's "Street Signs Asia" on Thursday.
"Its been a total bomb, it has failed completely."