EU prepares 20th package of sanctions against Russia: a blow to energy, banks and trade

The European Commission has presented a draft of the 20th package of sanctions of the European Union against the Russian Federation. The new restrictive measures are focused primarily on three key areas - energy, financial services and foreign trade. This was stated by the President of the European Commission Ursula von der Leyen.

As noted in the statement, the text of which was published by "European Pravda", the proposed package should significantly increase the pressure on the Russian economy, limiting revenues from energy exports, narrowing financing opportunities and reducing access to critically important goods and technologies.

At the same time, the 20th package of sanctions still has to go through the procedure of discussion and approval in the EU Council. Its adoption requires the unanimous support of all 27 member states of the European Union, which is a prerequisite for the sanctions to enter into force.

A key element of the new package will be additional restrictions in the energy sector. In particular, the European Commission proposes to introduce a complete ban on the provision of maritime services for the transportation of Russian crude oil. According to von der Leyen, such a step should further reduce Russia's revenues from energy exports and make it more difficult to find new buyers for oil.

Since shipping is a global business, the EU plans to implement this ban in close coordination with like-minded partners after the relevant decision of the G7 countries. In addition, 43 more vessels of the so-called Russian shadow fleet will be added to the sanctions list, which will increase their total number to 640 units.

The European Union also intends to make it more difficult for Russia to acquire new tankers for the needs of the shadow fleet. In addition, bans on maintenance and other services for liquefied natural gas tankers and icebreakers are being introduced. This is aimed at further undermining Russian gas export projects and complements the already existing ban on LNG imports agreed under the 19th sanctions package and the RepowerEU regulation.

The second block of restrictions concerns the Russian financial sector. The European Commission proposes to add another 20 Russian regional banks to the sanctions list, as well as to strengthen measures against the use of cryptocurrencies to circumvent sanctions. This involves restricting the activities of cryptocurrency companies and platforms that can help finance sanctioned economic activities.

In addition, the sanctions will affect individual banks in third countries that, according to the EU, are involved in facilitating illegal trade in sanctioned goods. Thus, Brussels seeks to block alternative payment channels that Russia uses to support its economy.

The third area of ​​the new package is trade restrictions. The EU is proposing new export and service bans across a wide range of sectors, from rubber and tractors to cybersecurity services. The total value of the restrictions is over €360 million.

Separately, new import bans on metals, chemicals and critical minerals that were not previously subject to sanctions are planned, worth over €570 million. Export restrictions are also planned to be extended to goods and technologies that could be used for Russia’s military needs, including materials for the production of explosives. The Commission is also proposing to set a quota for ammonia imports to further restrict its supply.