EU adopts 19th package of sanctions against Russia

BRUSSELS - European Union (EU) member states on Thursday adopted the 19th package of sanctions against Russia targeting key sectors such as energy, finance, the military industrial base, special economic zones, as well as enablers and profiteers of its war of aggression.

The European Commission indicated that a total ban on Russian liquefied natural gas (LNG) and a further clamp-down on the shadow fleet represent the strongest sanctions yet on Russia's crucial energy sector. Strong measures also target financial services and infrastructure (including for the first time crypto), as well as trade. The measures also target the services sector and strengthen anti-circumvention tools.

The 19th package contains a ban on imports of Russian liquefied natural gas (LNG) as of 1 January 2027 for long-term contracts, and within six months as of the entry into force of the sanctions for short-term contracts.

The sanctions package imposes a full transaction ban on major companies Rosneft and Gazprom Neft.

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.

An import ban on a variant of liquefied petroleum gas (LPG) addresses circumvention, as some member states report that this variant has been used to bypass existing LPG restrictions.

With another 117 vessels added to the blacklist, 557 vessels in Russia's shadow fleet are now listed by the EU. They are subject to a port access ban and a ban on receiving services.

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.

The new measures also include additional prohibitions on energy-related services, such as scientific and technical services (for example, geological prospecting and mapping).

In the area of banking, 5 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 imposed on Russia's payment card and fast payment system (Mir and SBP). The measures also list 4 new financial institutions in Belarus and Kazakhstan that use the Russian payments system (SPFS).

The EU is imposing full-fledged sanctions on the developer of a widely used rouble-backed stablecoin A7A5, the Kyrgyz issuer of that coin, and a related major trading platform. For the first time, the new measures also prohibit the use of that cryptocurrency. In addition, the sanctions directly target a cryptocurrency exchange in Paraguay that has played a key role in circumventing existing restrictions.

EU operators are banned from providing crypto services and certain fintech services that enable Russia to develop its own financial infrastructure and possibly circumvent sanctions.

The package introduces transaction bans on 5 third-country banks in Central Asia that support Russia's war economy and frustrate the effectiveness of our sanctions. EU operators are banned from carrying out transactions with any of those financial operators.

The package expands export restrictions and bans to further disrupt and weaken Russia's military-industrial complex. These include individual sanctions (‘listings') of businesspersons and companies forming part of the Russian military-industrial complex, and operators from the UAE and China producing or supplying military and dual-use goods to Russia.

New export restrictions have been introduced on additional dual-use items and advanced technologies, including metals for the construction of weapon systems and products used in the preparation of propellants, not yet under sanctions.

New export bans have been imposed on items such as salts and ores, constructions materials and articles of rubber.

The sanctions 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, including Hong Kong, 3 in India and 2 in Thailand).

Measures are also targeting Russia's Special Economic Zones (SEZs): These zones are designed to attract foreign investment and play a critical role in driving economic growth and infrastructure development. 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.

As part of the new measures, the EU introduces service bans blocking Russian access to advanced digital capabilities within the Union, including certain space-based services and AI services. In parallel, the existing targeted ban on services to the Russian government will be reinforced. A new requirement for prior authorization will apply to any non-prohibited services to the Russian government, ensuring that all such activities are subject to strict scrutiny and oversight.

The new measures prohibit re-insurance services regarding vessels and aircraft of the Russian government or Russian persons for up to five years after their sale to third countries.

The new measures introduce an obligation for Russian diplomats, travelling across the EU beyond their country of accreditation, to inform the relevant EU member state in advance. EU member states may impose an authorization requirement on Russian diplomats for traveling to their territories, based on visas or residence permits issued by another state. This measure is meant to tackle the increasingly hostile intelligence activities that support Russia's aggression against Ukraine.

The EU is reinforcing accountability of those involved in abduction, forced assimilation and indoctrination of Ukrainian children by listing 11 additional individuals.