The EU has adopted its 21st package of sanctions against Russia, thereby tightening existing measures in a number of areas. This time, the focus is on financial services, cryptocurrencies, energy, trade and the military-industrial complex. In addition, the largest number of new individuals and organisations to date have been added to the sanctions lists – a total of 218 entries (48 individuals and 170 organisations).
Tighter sanctions in the financial and crypto sectors
The EU is significantly expanding its measures against the Russian financial sector. New sanctions have been imposed on 94 banks and major financial institutions, as well as a leading figure in the Russian banking sector. In addition, transaction bans apply to a further 33 Russian credit and financial institutions, a Kyrgyz bank and three other banks outside Russia, which are accused of involvement in circumventing sanctions.
The cryptocurrency sector is also subject to stricter regulations: the transaction ban is being extended to 14 cryptocurrency service providers in various third countries. Furthermore, the EU is, for the first time, introducing the possibility of completely banning cryptocurrency services from third countries, provided that they assist Russia in circumventing sanctions.
Restrictions in the energy sector and trade
In the energy sector, the EU is suspending the automatic adjustment of the oil price cap until 15 July 2027, with provision for an interim review.
In addition, action against the so-called ‘shadow fleet’ is being stepped up. A further 41 vessels, as well as eight organisations and one individual supporting their operations, are being added to the list. The measures specifically target tankers from third countries that are being used to circumvent the oil price cap or to support the Russian energy sector.
The package also specifically targets the oil sector. Sanctions have been imposed on 18 entities and one individual, including three Russian refineries, a major refinery in Belarus and a company involved in the distribution of Belarusian petroleum products in Russia. A new provision has also been introduced allowing transactions with listed refineries to be prohibited. A corresponding transaction ban will come into force for a Georgian refinery after six months. In addition, five oil traders have been listed for circumventing existing oil sanctions.
Further measures concern critical infrastructure: the transaction ban is being extended to include two Russian ports and four airports. In addition, the EU is introducing a reporting requirement for the sale of LNG tankers and creating the possibility of further restrictions on the sale of such tankers to Russian nationals and companies.
The gold, diamond, mining and metals sectors are also coming under greater scrutiny. Sanctions have been imposed on seven major players in the gold sector, a large diamond company and several organisations in the mining and metals sectors.
Measures against the military-industrial complex
To curb the Russian defence industry, 56 individuals and companies have been newly added to the list, including 37 entries directly linked to the manufacture and supply chain of long-range drones.
In addition, 51 further organisations are subject to stricter export controls on dual-use goods and technologies. These include companies from third countries accused of involvement in circumventing existing export controls.
Legal basis for visa restrictions
The package establishes the legal basis for a comprehensive visa ban on combatants and former combatants of the Russian armed forces, as well as other groups involved. The Council will decide at a later date on the date on which it is to come into force.
Additional trade restrictions
The existing export bans are being extended to cover further goods and technologies relevant to the Russian military industry. These include, amongst others, nickel and beryllium powders, specialised metals and alloys, various aeronautical goods for unmanned aerial vehicles (UAVs), and other components for the aerospace and defence industries.
On the import side, additional restrictions will apply in future to goods that generate significant revenue for Russia. These include, amongst others, copper, nickel, lead and precious metal ores, zinc, chromium oxides, glassware, imitation pearls and car parts.
Beyond that, additional measures will be introduced against Belarus, mirroring the trade and legal protection measures in place against Russia.
Further sanctions:
- Sanctions against eight individuals who disseminate Russian war propaganda.
- The designation of a major-general for serious human rights violations and war crimes.
- Enhanced legal protection for EU economic operators, ensuring that, in certain cases, rulings by Russian courts cannot be recognised or enforced within the EU.
