The European Union has unveiled a significant new package of sanctions aimed at crippling Russia’s ability to fund its ongoing war in Ukraine. The proposed measures target key sectors including oil and energy, financial services, and a range of goods and technologies, signaling a determined effort to increase pressure on Moscow.
The cornerstone of the new sanctions package is a proposed full ban on maritime services related to Russian oil. This would prohibit EU companies from providing insurance, shipping, or port access to vessels carrying Russian crude oil. Previously, such services were permitted only for tankers adhering to the G7 price cap. This new measure, if approved, would effectively remove that exemption, making it significantly harder for Russia to export its oil and generate crucial revenue.
European Commission President Ursula von der Leyen emphasized that these actions are necessary because “Russia will only come to the table with genuine intent if it is pressured to do so.” The ban on services for liquefied natural gas (LNG) and icebreakers is also being considered, following an earlier agreement to ban all Russian LNG imports by the end of the year.
Beyond energy, the EU is moving to restrict Russia’s financial system. The proposed sanctions include targeting 20 additional Russian regional banks and several banks in third countries suspected of facilitating trade in sanctioned goods. Measures are also being introduced to curb Russia’s use of cryptocurrency platforms to bypass existing restrictions and establish alternative payment channels.
In terms of trade, the EU plans to impose new import bans on metals, chemicals, and critical minerals valued at approximately €570 million. Export restrictions will be tightened on items and technologies that could aid Russia’s military efforts, including materials for explosives. For the first time, the EU’s Anti-Circumvention Tool may be activated to prevent the re-export of sensitive products like computer numerical machines and radios to Russia through third countries.
These proposed sanctions are part of the EU’s ongoing effort to weaken Russia’s war economy, with the goal of having the measures approved by February 24, the fourth anniversary of the full-scale invasion. The EU notes a significant drop in Russian oil and gas revenues last year, indicating that existing sanctions are having an effect.
The EU is also looking to coordinate these new measures with international partners, including the G7, to ensure a unified and impactful approach. The proposals come amid ongoing diplomatic efforts, including recent trilateral talks involving Ukrainian, American, and Russian negotiators, though progress remains limited. The United States has also indicated that additional punitive measures against Russia are under consideration.