Brussels: The European Commission has proposed a new round of sanctions against Russia, seeking to further restrict Moscow’s ability to finance its war in Ukraine by tightening controls on oil, gas, banking, and trade.
The proposed measures form the European Union’s 20th sanctions package since Russia’s full-scale invasion began and would significantly expand restrictions on energy-related services, financial institutions, and what Brussels describes as Russia’s “shadow fleet” of oil tankers.
Commission President Ursula von der Leyen said the latest package aims to increase pressure on the Kremlin’s war economy and compel Russia to engage seriously in negotiations.
“Russia will only come to the table with genuine intent if it is pressured to do so,” von der Leyen said, accusing Moscow of continuing attacks on civilian infrastructure while Ukraine remains on the defensive.
Full Ban on Maritime Services
At the centre of the proposal is a full ban on maritime services provided by EU companies to vessels transporting Russian crude oil. The measure would prohibit services such as insurance, shipping support, and port access, regardless of whether the oil is sold within the G7-imposed price cap.
Until now, EU companies have been permitted to provide services to tankers that complied with the price cap, which was introduced in December 2022. The cap was recently adjusted to $44.10 per barrel to reflect market conditions and further reduce Russian revenues.
If approved, the new ban would effectively render the price cap inapplicable within EU jurisdiction, as all Russian oil shipments would be denied EU-based services without exception.
The proposal was previously advocated by Finland and Sweden, which argued that a blanket ban would be easier to enforce, raise operating costs for Russia’s oil sector, and limit the use of falsified documentation to evade sanctions.
Any decision would require unanimous approval from all 27 EU member states. Securing participation from the United Kingdom would be critical, given its leading role in maritime protection and indemnity insurance.
Expanded Energy and Shipping Measures
Von der Leyen said similar restrictions would apply to the maintenance and servicing of Russian liquefied natural gas (LNG) tankers and icebreakers. EU countries have already agreed to phase out all Russian LNG imports by the end of the year.
The package also proposes adding 42 vessels to the EU’s blacklist of Russia’s so-called shadow fleet, bringing the total number of sanctioned ships to 640.
Banking, Trade, and Anti-Circumvention
Beyond energy, the Commission’s proposal targets 20 Russian regional banks and companies involved in cryptocurrency trading, which EU officials say Russia has used to bypass financial restrictions.
The measures would also restrict imports of Russian metals, chemicals, and critical minerals valued at around €570 million, while introducing quotas on ammonia used in fertiliser production. Exports of rubber, tractors, and cybersecurity services would also be banned.
For the first time, the EU would activate its Anti-Circumvention Tool to block the sale of certain machinery and communication equipment to third countries where there is a high risk of re-export to Russia.
The tool was introduced in 2023 but has not previously been used, despite evidence of sanctions circumvention through neighbouring states.
Diplomatic Context
Brussels is aiming to approve the new sanctions package by 24 February, marking four years since the start of Russia’s full-scale invasion of Ukraine. Von der Leyen and António Costa, President of the European Council, are expected to visit Ukraine on that date.
The announcement follows recent trilateral talks in Abu Dhabi involving Ukrainian, Russian, and US officials, which resulted in an agreement to exchange 314 prisoners of war. However, broader diplomatic progress remains limited.
The United States has signalled it may also consider additional measures. US Treasury Secretary Scott Bessent said further sanctions were “under consideration” depending on the outcome of peace talks.
