The shadow fleet, banks, cryptocurrency, and the military-industrial complex: what the EU’s 20th sanctions package includes
23 April 23:34
The EU’s 20th package of sanctions against Russia is one of the most comprehensive in scope and one of the toughest in substance. It targets the energy sector, oil exports, the “shadow fleet,” banks, cryptocurrencies, the military-industrial complex, propaganda, and mechanisms for circumventing sanctions. This is stated on the European Commission’s website, reports "Komersant Ukrainian"
In total, the package includes 120 new individual sanctions decisions, which the EU has called the largest expansion of the lists in the past two years.
“The European Commission welcomed the decision by EU member states to approve the 20th sanctions package. Support for a free and sovereign Ukraine remains unwavering. This package puts additional pressure on Russia to begin negotiations and do so on terms acceptable to Ukraine,” the statement reads.
According to official information from the Council of the EU, the new package consists of individual sanctions and a broad range of economic restrictions. In addition to 120 new personal and corporate sanctions, the EU has separately targeted sectors that directly or indirectly support Russia’s military machine: oil revenues, transportation, banks, crypto operations, the defense industry, and re-export schemes via third countries.
The main blow—against the energy sector and the “shadow fleet”
One of the central elements of the 20th package is new sanctions against the Russian energy sector. An additional 36 companies operating in the fields of oil exploration, production, refining, and transportation have been targeted by the restrictions.
The EU has also expanded sanctions against infrastructure that allows Russia to continue oil exports. Another 46 vessels have been added to the blacklist, bringing the total number of sanctioned ships in Russia’s “shadow fleet” to 632.
These vessels are prohibited from accessing EU ports and receiving any services.
Separately, the EU has introduced new rules regarding the sale of tankers from EU countries to prevent their further use by Russia. Sellers must conduct enhanced due diligence on buyers, and sales contracts will include a mandatory clause prohibiting the use of the vessels in Russia.
In addition, the sanctions have affected port infrastructure: the Russian ports of Murmansk and Tuapse have been targeted, as well as, for the first time, a third-country port—the Karimun Oil Terminal in Indonesia—which the EU links to the circumvention of oil restrictions.
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Gas, LNG, and New Maritime Restrictions
The 20th package also affected the liquefied natural gas sector. The EU introduced a new ban on servicing Russian LNG tankers and icebreakers, which is expected to hit Russian gas exports.
The new rules will also allow operators in EU countries to terminate long-term contracts with Russian companies for LNG terminal services.
In a broader context, the package also creates a legal framework for a future ban on maritime shipments of Russian crude oil and petroleum products in coordination with the G7 and the price cap coalition.
Banks, Crypto, and the Digital Ruble Under New Sanctions
Another major block of sanctions targets the financial sector. The EU has expanded the ban on transactions to include 20 more Russian banks, bringing the total number of Russian financial institutions cut off from the EU’s internal market to 70.
At the same time, four banks in Kyrgyzstan, Laos, and Azerbaijan have been subject to restrictions, as the EU believes they helped Russia circumvent sanctions or were linked to the Russian financial messaging system.
Special emphasis has been placed on the cryptocurrency sector. The EU has imposed a complete sectoral ban on transactions with any Russian crypto service providers, as well as with decentralized platforms through which Russia can circumvent financial restrictions.
The new measures also explicitly ban the use of RUBx—a ruble-pegged stablecoin—as well as the digital ruble, which the Central Bank of Russia is developing as a potential tool for circumventing sanctions.
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New export and import restrictions
The 20th package introduces sweeping new bans on trade with Russia. Specifically, it includes:
- new bans on exports to Russia of goods—ranging from rubber to tractors—worth over €365 million;
- new export restrictions on explosives, laboratory equipment, high-performance lubricants, and additives for them;
- restrictions on the provision of cybersecurity services to Russia;
- bans on imports of metals, chemicals, and minerals worth over €530 million;
- quotas on ammonia to limit current imports.
A blow to the military-industrial complex and third-country suppliers
Sanctions have also been expanded to target Russia’s military-industrial complex. The list now includes 58 companies and associated individuals involved in the production of military equipment, including drones.
The EU has also tightened restrictions on suppliers of critical technologies from third countries—specifically China, the UAE, Uzbekistan, Kazakhstan, and Belarus—if they supplied the Russian military-industrial complex with dual-use goods or weapons systems.
In addition, another 60 organizations were added to a separate list, which either directly support the Russian military-industrial complex or help circumvent sanctions. Among them are 32 companies from Russia and 28 from third countries, including China, Hong Kong, Turkey, the UAE, and Thailand.
The EU has activated the anti-circumvention instrument for the first time
For the first time, the EU has activated its anti-circumvention instrument due to Kyrgyzstan’s systematic failure to comply with requirements.
Brussels has explicitly banned the export of certain machine tools and telecommunications equipment to that country if there is a high risk of their subsequent re-export to Russia for the production of drones and missiles.
The European Commission emphasized that these goods help Russia maintain its ability to wage war against Ukraine.
Propaganda, Science, and Protection of European Business
The 20th sanctions package was not limited to trade and energy. The EU has stepped up its fight against Russian propaganda by introducing new measures against so-called “mirror” sites that circumvent the ban on broadcasting by sanctioned media outlets such as Russia Today and Sputnik through new domains and websites. From now on, the distribution of such content within the EU will also be prohibited.
Additionally, the package introduces a ban on receiving funding from the Russian government for research and innovation in the EU. This applies to research institutes, universities, and other institutions, as well as individuals associated with them.
Another key component is the protection of European companies. From now on, courts in the EU can fine Russian individuals for attempting to recover assets through Russian courts, and mechanisms are in place to compensate EU companies if their property in Russia was illegally expropriated or if the Russian side used their intellectual property without consent.
Personal Sanctions and Belarus
The package also includes 120 new individual sanction targets. The restrictions apply to oligarchs, propagandists, individuals involved in the abduction of Ukrainian children, as well as those whom the EU links to the looting of Ukrainian cultural heritage in the occupied territories.
The EU has also extended some provisions of the 20th package to Belarus, specifically regarding trade, finance, services, and legal protection for EU operators.
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