The European Union has adopted its 17th package of sanctions against Russia, intensifying efforts to restrict Moscow's ability to finance and sustain its war in Ukraine. This comprehensive set of measures targets critical sectors of Russia's economy and military infrastructure.
Cracking Down on Russia's "Shadow Fleet"
A key component of the new sanctions is aimed at Russia's so-called "shadow fleet", which includes oil tankers operating through high-risk practices to evade sanctions. The EU has significantly expanded restrictions on these vessels, doubling the number banned from accessing EU ports and from receiving key maritime services. A total of 342 tankers are now designated, including 189 designated under the present package.
These vessels are instrumental in transporting Russian oil outside formal markets, and the EU's goal is to cripple this network and slash the oil revenues fueling the Kremlin's war machine. In parallel, the EU has imposed asset freezes and funding bans on several companies that support the shadow fleet, including shipping firms based in the UAE, Türkiye, and Hong Kong, as well as a major insurer of Russian oil transport operations.
Since the introduction of the oil price cap and restrictions on this fleet, the EU reports a €38 billion decline in Russia's oil-related revenues.
Targeting Energy and Military Sectors
To further weaken Russia's financial base, the EU has sanctioned Surgutneftegaz, one of the country's largest oil producers, as well as a key oil shipping firm. These companies are seen as major contributors to the Russian state's income.
In the military sphere, over 45 entities and individuals have been targeted for supplying the Russian armed forces with drones, ammunition, weapons, and logistical support. The sanctions also cover industrial enablers, including Russian and Chinese suppliers of machine tools and high-tech components.
Notably, three Chinese entities (including a state-owned firm), along with one entity each from Belarus and Israel, have been sanctioned for supplying critical components for drone manufacturing and other military uses.
Curtailing Third-Country Sanctions Circumvention
To combat sanctions evasion, the EU has added 31 entities to its list of those subject to strict export controls on dual-use goods and sensitive technologies. These companies, operating in countries such as Serbia, Türkiye, the UAE, Vietnam, and Uzbekistan, have been linked to circumventing existing restrictions, particularly concerning drones and precision manufacturing tools.
Additional export bans now cover goods that enhance Russia's military or technological capacities, including chemical precursors used in energetic materials and machine tool parts.
Safeguarding Ukrainian Sovereignty
This latest package also addresses the illegal exploitation of Ukrainian resources in occupied territories. Sanctions have been imposed to counter the looting of cultural heritage in Crimea and the unlawful seizure and distribution of agricultural products from occupied regions.
Broader Impact
With the inclusion of 75 new designations, 17 individuals and 58 entities, the EU's restrictive measures now affect more than 2,400 individuals and organizations. Those listed face asset freezes and a ban on receiving funding from EU persons or entities. Individuals are also subject to travel bans within EU member states.
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