On April 23, the European Union approved the 20th package of sanctions against Russia, which included more than 100 individual restrictions, increased pressure on the energy sector and the "shadow fleet", as well as new measures against financial institutions in third countries and companies supporting the Russian military-industrial complex.
Points of attention
- The 20th package of EU sanctions against Russia includes over 100 individual restrictions and increased pressure on the energy sector.
- The sanctions strategically target key sectors fueling Russia's war against Ukraine, including oil production, processing, and transportation.
The EU has revealed the contents of the 20th package of sanctions against Russia
This is stated in the official statement of the Council of the EU.
As noted, the new package of sanctions against the Russian Federation includes, in particular, 120 new individual sanctions, as well as multi-level economic sanctions aimed at key sectors that fuel Russia's war against Ukraine.
The new package contains the basis for a future ban on the maritime transport of Russian crude oil and petroleum products. It is noted that this will take place in full coordination and following discussions with the G7 and the international coalition to limit prices.
The sanctions package introduces a comprehensive list of 36 entities, covering both the upstream and downstream segments of the Russian energy sector, including: exploration, production, refining, and transportation of oil.
This package strategically targets new players that have recently increased their share of the export market. Revenues from Russian oil exports are further restricted by lists focused on the shadow fleet ecosystem, including entities operating in third countries, as well as a significant marine insurer.
Thanks to the package, an additional 46 vessels are now subject to a ban on access to ports and a ban on the provision of a wide range of services related to maritime transport, bringing the total number of vessels on the list to 632.
It also introduces mandatory due diligence checks on tanker sales, and prohibits the provision of maintenance and other services for Russian liquefied natural gas (LNG) tankers and icebreakers.
In addition, from January 2027, it will be illegal to provide LNG terminal services to Russian entities or entities owned or controlled by Russian citizens or operators.
With this package, the EU also targets a transaction ban on four financial institutions in third countries for circumventing EU sanctions or for being linked to the "Russian Financial Messaging System" — a Russian banking messaging network.
In addition, it further restricts the Russian military-industrial complex by adding to the list 58 companies and individuals associated with them that, among other things, are engaged in the development and production of military products such as drones.
For the first time in its history, the EU is using its anti-circumvention tool, banning the export of any CNC machine tools and radio equipment to Kyrgyzstan, where "there is a high risk that these goods will be re-exported to Russia." The EU has also introduced a quota on ammonia imports.
On April 23, the EU Council adopted, by written procedure, amendments to the EU's long-term budget for 2021-27, which will allow Ukraine to receive a €90 billion loan in 2026-27, as well as the 20th package of EU sanctions against Russia.
