EU Unveils 21st Russia Sanctions Package Targeting Shadow Fleet, Banks, LNG Tankers

The European Commission on Tuesday proposed a sweeping 21st package of sanctions against Russia, targeting the country’s financial sector, shadow fleet operations, energy exports, and military supply chains as Brussels seeks to maintain economic pressure on Moscow more than four years after the start of its full-scale invasion of Ukraine.

European Commission President Ursula von der Leyen and EU High Representative Kaja Kallas outlined the measures, which would add dozens of banks, vessels, companies, and individuals to the bloc’s sanctions regime while introducing new restrictions on LNG shipping and cryptocurrency services.

“Brick by brick, we are collapsing the foundations of Russia’s war economy,” Kallas said while presenting the package.

Among the maritime measures, the Commission proposed sanctions on 30 additional vessels linked to Russia’s shadow fleet, bringing the total number of sanctioned ships above 660. The package would also expand sanctions criteria to target vessels and companies that provide bunkering, refueling, or other support services to already-sanctioned ships.

“For the first time, we are also targeting vessels that assist the shadow fleet — providing bunkering and other services for example,” von der Leyen said.

The Commission is also proposing transaction bans on two Russian ports and four airports involved in supporting Russian oil exports, along with new restrictions on the sale and resale of LNG tankers to Russia. The move follows earlier EU measures restricting tanker sales used in crude oil transport.

A notable feature of the package is a proposed temporary freeze of the Russian oil price cap adjustment mechanism. According to von der Leyen, the measure is intended to prevent recent market disruptions stemming from the closure of the Strait of Hormuz from boosting Russian oil revenues.

“Our oil price cap has a built-in adjustment mechanism to follow the market. It was not made for market shocks like the one caused by the closure of the Strait of Hormuz,” von der Leyen said. “So we propose to simply pause the adjustment until January next year.”

The financial measures would impose asset freezes on nearly 90 banks and expand transaction bans to more than 30 additional Russian and third-country financial institutions. The package would also tighten restrictions on cryptocurrency services and introduce transaction bans on 11 crypto platforms accused of helping Russia circumvent sanctions.

The Commission said it would further target entities supporting Russia’s military-industrial base, including more than 30 new listings tied to drone production and export controls affecting 50 companies located in China, Türkiye, Kyrgyzstan, Kazakhstan, the United Arab Emirates, and India. Additional export restrictions would cover nickel powders, specialty metals, and high-performance alloys used in aerospace and defense applications.

The package also proposes new import restrictions on selected metals, chemicals, car parts, and fish products, including a complete ban on some Russian seafood imports. Fisheries would become one of the last major Russian economic sectors subjected to significant EU trade restrictions.

In addition, Brussels is proposing a broad visa ban on former members of the Russian armed forces and affiliated proxy groups.

The sanctions package must be approved by EU member states before taking effect. If adopted, it would become the bloc’s 21st round of sanctions imposed since Russia’s invasion of Ukraine in February 2022.

Editorial Standards · Corrections · About gCaptain

Subscribe for Daily Maritime Insights

Sign up for gCaptain’s newsletter and never miss an update

— trusted by our 105,236 members