EU adopts 20th package of sanctions against Russia: Energy, finance, and trade targeted

(Patria) - The European Union today adopted its 20th package of sanctions against Russia, introducing new measures covering energy, the financial sector, trade, and propaganda.

For the first time, a mechanism to prevent the circumvention of sanctions has been activated.

The European Commission (EC) emphasizes that the goal of the new sanctions is to exert additional pressure on Moscow to agree to negotiations on the war in Ukraine under terms acceptable to Kyiv.

The new package of sanctions includes 36 entities from the Russian energy sector, covering the chain from oil exploration and extraction to refining and transport.

Particular focus has been placed on the so-called shadow fleet, used for exporting Russian oil outside the sanctions regime.

The European Union has added another 46 tankers to the list, bringing the total number of sanctioned vessels to 632.

Two Russian ports – Murmansk and Tuapse – have also been added to the list, as well as, for the first time, a terminal in a third country – Indonesia's Karimun.

In addition, a measure related to the sale of tankers from the European Union is being introduced.

Sellers from the European Union will henceforth have to include a mandatory clause in contracts guaranteeing that the vessels will not be used for the transit of Russian energy resources.

A ban on maintenance services for Russian LNG tankers and icebreakers has also been introduced, while European companies will be able to terminate long-term contracts for the use of LNG terminals in business related to Russian operators.

In this package, the EU has established a legal and political mechanism for a potential ban on the maritime transport of Russian oil and petroleum products.

This decision would be made in coordination with partners from the Group of Seven (G7) and represents a potential expansion of existing restrictions to the global transport chain.

The EU has expanded the ban on doing business with another 20 Russian banks, bringing the total number of banks excluded from accessing the EU market to 70.

New measures also include a ban on transactions with certain banks in Kyrgyzstan, Laos, and Azerbaijan, a complete ban on cooperation with Russian crypto services and decentralized platforms, a ban on the use of the digital ruble and the stablecoin RUBx, as well as restrictions on intermediaries assisting in the circumvention of sanctions.

At the same time, five financial institutions from third countries have been removed from the list after committing not to participate in such activities, the EC notes.

The package introduces new export bans worth over 365 million euros, including goods from rubber to tractors, as well as technologies used in the military industry, such as explosives and specialized laboratory equipment.

Import bans on metals, chemicals, and minerals from Russia worth over 530 million euros have also been introduced, as well as quotas for ammonia.

58 companies and individuals linked to the development of military equipment, including drone manufacturers, have been added to the sanctions list.

Sanctions also include companies from third countries, including China, the United Arab Emirates, Kazakhstan, and Belarus, which have supplied dual-use goods.

The EU has activated for the first time a mechanism to prevent the circumvention of sanctions, aimed against the systematic re-export of sanctioned goods to Russia via third countries.

Specifically, measures have been introduced against Kyrgyzstan for the re-export of machinery and telecommunications equipment used in the production of drones and missiles.

The package includes 120 new sanctions, 33 against individuals, and 83 against companies and organizations, with Russian oligarchs, propagandists, and individuals linked to the deportation of children from Ukraine added to the list.

The difference in the total sum arises because special categories on the list, which are neither strictly persons nor companies, are also included in the overall figure.

The EU has introduced additional legal protection measures for its companies and citizens. These include the possibility of penalizing the initiation and abuse of legal proceedings before Russian courts against EU companies, as well as the right of European firms to seek damages if such judgments are enforced in third countries.

A ban on transactions with companies and individuals using expropriated assets of EU companies is also being introduced, as well as additional protection for the intellectual property of European operators in Russia.

New measures also include a ban on media outlets circumventing broadcasting bans, such as Russia Today (RT) and Sputnik, and financing research in the European Union from Russian state sources is prohibited.

Some measures have also been extended to Belarus, including restrictions on trade, finance, and the protection of EU companies, according to the EC website.