The European Union is in the process of developing a new sanctions package aimed at Russia, which may include restrictions on approximately 20 additional tankers associated with a shadow fleet. This initiative is part of the EU’s ongoing efforts to counteract Russian activities amid the ongoing conflict in Ukraine.
According to sources cited by Bloomberg, the EU plans to finalize and formally propose this sanctions package by early June. Member states were briefed on these developments last week, indicating a coordinated approach to tightening economic measures against Russia.
The proposed sanctions are expected to target a broader range of entities, including banks, oil traders, refineries, and cryptocurrency operators in third countries that facilitate Russia’s circumvention of existing EU restrictions. Notably, the sanctions may extend to vessels transporting liquefied natural gas (LNG), which would further limit the Kremlin’s ability to utilize its shadow fleet for LNG shipments.
To date, the EU has already imposed sanctions on hundreds of vessels and aims to include additional measures against ships providing services to tankers. However, a complete ban on maritime oil shipments is unlikely, as several member states remain opposed to such a drastic measure due to concerns about instability in the Middle East. This opposition is particularly significant if broader support from the G7 countries is not secured.
The primary objectives of the new sanctions package include further diminishing Russia’s energy revenues and financial sector capabilities, while also disrupting the supply chains essential for its military industry.
Additional proposals for the 21st sanctions package encompass trade restrictions on critical minerals, metals, and ores pivotal to Russia’s aerospace sector and drone development, which are used in attacks against Ukrainian cities. Technologies related to signal jamming are also under consideration.
The EU is also evaluating export controls on around twenty firms, including those from China, India, Turkey, and Central Asia, which continue to supply Russia with goods that are restricted or essential for military production.
Research from S&P Global Market Intelligence indicates that by 2025, approximately 17% of the world’s operational oil tankers will belong to Russia’s shadow fleet, underscoring the significance of these proposed sanctions.
The EU is preparing a new sanctions package targeting Russia, which may include restrictions on additional tankers linked to a shadow fleet. The measures aim to further reduce Russia's energy revenues and disrupt its military supply chains.