EU adopts 19th sanctions package against Russia; China, India hit too

A total ban on Russian liquefied natural gas (LNG) and a further clampdown on the shadow fleet represent the strongest sanctions yet on Russia's energy sector.

Strong measures also target financial services and infrastructure--including crypto currency for the first time—as well as trade, the European Commission said in a release.

The measures also target the services sector and strengthen anti-circumvention tools. With this package, the number of listed vessels in Russia's shadow fleet reaches a total of 557.

The sanctions ban imports of Russian LNG as of January 1, 2027, for long-term contracts, and within six months as of the entry into force of the sanctions for short-term contracts.

There is a full transaction ban on major companies Rosneft and Gazprom Neft: The new measures eliminate the exemption for Rosneft's and Gazprom Neft's oil and gas imports into the EU. The import of oil from third countries like Kazakhstan and the transport of oil compliant with the oil price cap to third countries are exempted.

The EU is also taking measures against important third country operators enabling Russia's revenue streams. This involves sanctioning Chinese entities—two refineries and an oil trader—that are significant buyers of Russian crude oil.

Import of a variant of liquefied petroleum gas (LPG) has also been banned. This measure addresses circumvention, as some member states report that this variant has been used to bypass existing LPG restrictions.

The 117 additional vessel listings take total new listings to 557 vessels in Russia's shadow fleet. These are subject to a port access ban and a ban on receiving services. Additional sanctions are notably imposed across the shadow fleet value chain.

An extension of the port infrastructure ban will enable the EU to list ports in third countries that are instrumental to the Russian war effort.

Five new banks in Russia are added to the transaction ban. No EU operator will be able to engage with any of the listed banks directly or indirectly.

New bans have been sanctioned on Russia's payment card and fast payment system (Mir and SBP). The measures also list four new financial institutions in Belarus and Kazakhstan that use the Russian payments system (SPFS).

The package adds 45 entities to the list of those providing direct or indirect support to Russia's military industrial complex or engaged in sanctions circumvention. This includes 28 established in Russia and 17 in third countries—12 in China and Hong Kong, three in India and two in Thailand.

To make it clear that EU businesses should stay away, the package proposes a prohibition on entering into new contracts with any entity established within certain Russian SEZs. In addition, two of these SEZs—Alabuga and Technopolis Moscow—will be subject to a ban that applies also to existing contracts.

Meanwhile, expressing strong dissatisfaction and firm opposition, China urged the EU to immediately cease listing Chinese enterprises in the package of sanctions.

A spokesperson for the country’s Ministry of Commerce said despite China's repeated negotiations and dissuasions, the EU has refused to change course.

ALCHEMPro News Desk (DS)