The European Union recently approved a comprehensive 20th sanctions package against Russia, according to the EU Commission on Thursday. The package is designed to further weaken Russia’s economy and its war-making capabilities. In total, the measure introduces 120 new individual listings and targets key sectors that support Russia’s war in Ukraine. Kaja Kallas, the EU’s spokeswoman, stated that the EU is committed to supporting Ukraine while simultaneously hindering those responsible for enabling Putin’s illegal aggression.
A central element of the new sanctions relates to Russia’s energy sector. For the first time, the foundational basis for a future ban on maritime services for Russian crude oil and oil products has been established. Additionally, 36 facilities across the entire value chain, from exploration to transport, have been hit with sanctions. Particular attention is paid to the “shadow fleet” which Russia utilizes to bypass the G7 oil price cap. Consequently, 46 more vessels have been banned from port access and related services, bringing the total number of sanctioned ships to 632. New compliance rules are also introduced for the sale of tankers, aiming to make it harder for the shadow fleet to expand. Moreover, maintenance work on Russian LNG tankers and icebreakers is prohibited, and starting in January 2027, offering LNG terminal services to Russian companies will become illegal.
In the financial sphere, the EU has implemented a transaction ban targeting 20 Russian banks. It has also sanctioned four financial institutions from third countries that facilitate sanctions circumvention. Recognizing Russia’s increasing reliance on cryptocurrencies, the package notably targets crypto service providers for the first time. One Kyrgyz cryptocurrency exchange has been hit with an EU-wide transaction ban. Furthermore, a complete sector ban is introduced for crypto platforms based in Russia, alongside a ban on transactions involving the RUBx cryptocurrency and any support for the development of the digital ruble.
To weaken Russia’s defense industry, an additional 58 companies and individuals have been sanctioned. Novel measures extend tougher export restrictions to 16 companies from third countries-including China, the United Arab Emirates, Uzbekistan, Kazakhstan, and Belarus-due to their supply of dual-use goods or weapons systems to Russia. The EU is also exercising its anti-circumvention instrument for the first time by banning the export of computer-controlled machinery and radio equipment to Kyrgyzstan following a sharp increase in re-exports to Russia. Simultaneously, the list of prohibited export goods has been expanded to include laboratory glass, lubricating oils, chemicals, and industrial machinery valued at over €360 million. New import restrictions affect Russian raw materials and metals, valued at more than €570 million.
The package also addresses human rights abuses, imposing sanctions on five individuals and one organization for the abduction and indoctrination of Ukrainian children, as well as four people for the misappropriation of Ukrainian cultural property. Four state propaganda figures have also been added to the restrictive list.
Furthermore, sanctions have been extended to Belarus, which supports Russia. Three new measures target the Belarusian defense complex and the Lukashenko regime. Significantly, a Chinese state-owned enterprise has been sanctioned for the first time in this context. Additionally, trade restrictions and bans on crypto services, cybersecurity, and tourism are being imposed on Belarus.