EU outlines contents of 20th Russia sanctions package
On 23 April, the European Union approved its 20th package of sanctions against Russia, which comprises more than 100 individual restrictive measures to increase pressure on the energy sector and the shadow fleet, as well as new measures targeting financial institutions in third countries and companies supporting Russia's military-industrial complex.
Source: a statement by the Council of the EU, as reported by European Pravda
Details: The new Russia sanctions package comprises 120 new individual sanctions, as well as multi-layered economic restrictions targeting key sectors that fuel Russia's war against Ukraine.
The package lays the groundwork for a future ban on maritime transportation of Russian crude oil and petroleum products. This measure will be implemented in full coordination and following discussions with the G7 and the Price Cap Coalition.
The sanctions package introduces a comprehensive list of 36 entities covering both the upstream and downstream segments of Russia's energy sector, including oil exploration, production, refining and transportation.
Quote: "This package strategically targets emerging players which have recently increased their export market share. Revenues from Russian oil exports are further suppressed through listings focusing on the shadow fleet ecosystem, including entities operating in third countries, as well as a significant maritime insurer."
Details: An additional 46 vessels are now subject to a port access ban and a prohibition on the provision of a wide range of maritime-related services, bringing the total number of listed vessels to 632.
The package also introduces mandatory due diligence checks on tanker sales and prohibits the provision of maintenance and other services to Russian liquefied natural gas (LNG) tankers and icebreakers.
As of January 2027, it will be illegal to provide LNG terminal services to Russian entities or entities owned or controlled by Russian nationals or operators.
Quote: "In addition, the EU is targeting four financial institutions in third countries with a transaction ban for circumventing EU sanctions or for connection with the Russian System for Transfer of Financial Messages, the Russian banking messaging network."
Details: Furthermore, the EU has expanded restrictions targeting Russia's military-industrial complex by adding 58 companies and related individuals involved in, inter alia, the development and production of military equipment such as drones.
For the first time, the EU is applying its anti-circumvention tool by banning exports of all computer numerical control machine tools and radio equipment to Kyrgyzstan, "where there is a high risk that these products will be re-exported to Russia". The EU has also introduced a quota on ammonia imports.
Background:
- On 23 April, the Council of the EU approved amendments to the EU's long-term budget for 2021-2027 by written procedure, enabling the provision of a €90 billion loan to Ukraine in 2026-2027, and also adopted the EU's 20th Russia sanctions package.
- Estonian Foreign Minister Margus Tsahkna also announced that work on the next sanctions package has already begun.
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