On Thursday 23 October, the EU Member States approved the 19th package of sanctions against Russia by written procedure, following the lifting of Slovakia’s reservations the previous evening. This package was proposed on 19 September by the European Commission and the High Representative of the Union (see EUROPE 13713/1).
Energy. The Europeans have decided to gradually ban imports of Russian liquefied natural gas (LNG) into the EU from 1 January 2027 for long-term contracts and within six months for short-term contracts.
The existing ban on transactions against two major Russian State-owned oil producers (Rosneft and Gazprom Neft) is also to be strengthened, and measures are to be taken against a Tatarstanian conglomerate active in the Russian oil sector and against two refineries and a Chinese oil trader that are “major buyers of Russian crude oil”, according to the EU Council.
The Europeans also decided to sanction 117 new vessels in the ‘shadow fleet’, and Litasco Middle East DMCC, the main supplier to Lukoil’s ‘shadow fleet’, based in the United Arab Emirates, but also the largest port container operator in the Russian Far East.
The criteria for imposing sanctions on third-country ports used for drone/missile transfers or for circumventing oil-related sanctions have been broadened.
Finances. From a financial point of view, it is forbidden to reinsure second-hand Russian aircraft and ships for the first five years following their sale to a third country.
In addition, five Russian banks - Istina, Zemsky Bank, Commercial Bank Absolut Bank, MTS Bank and Alfa-Bank - are subject to a total ban on transactions, and this ban has been extended to Russian electronic payment systems (Mir, Fast Payment System) and to four banks in third countries (Belarus and Kazakhstan). Five banks, a cryptocurrency exchange and two oil traders in Tajikistan, Kyrgyzstan, Paraguay, the United Arab Emirates and Hong Kong have also been banned from trading.
The EU also prohibits EU operators from concluding new contracts with nine Russian special economic zones, and a total ban on contracts in Alabuga and Technopolis Moscow. Crypto-asset services are prohibited for Russian nationals, residents and entities.
Trade. 45 new entities supporting the circumvention of sanctions are subject to measures, including three in India, two in Thailand and 12 in China/Hong Kong, many of which are involved in the development of drones, according to the EU Council.
The existing export ban has been extended to electronic components, rangefinders, other chemicals used in the preparation of propellants, and other metals, oxides and alloys used in the manufacture of military systems.
Salts and minerals, rubber articles, inner tubes, tyres, grinding wheels and building materials will also be subject to stricter export restrictions.
A ban on the purchase, import or transfer of all acyclic hydrocarbons has also been introduced, due to the importance of these materials in generating significant revenues for Russia. Russia’s largest gold producer has also been sanctioned.
European operators no longer have the right to provide services directly linked to tourist activities in Russia. The ban on providing AI, high-performance computing and commercial space services has also been extended, and authorisation is required for all services still authorised to the Russian government or individuals.
The EU is also targeting businesspersons and entities belonging to the Russian military-industrial complex and operators from the United Arab Emirates and China who produce or supply military and dual-use goods to Russia.
Human Rights. In addition, eleven people have been sanctioned for their links with the abduction of Ukrainian children by Russian forces. In order to simplify future sanctions against those responsible for the abduction, forced assimilation and militarised education of Ukrainian minors, the EU Council is also introducing a new criterion for inclusion on the list. Cha Yong Beom, a senior North Korean military commander deployed in Russia to support the invasion of Ukraine, and Ilya Anatolyevich Sorokin, a doctor responsible for the inhumane treatment of Ukrainian prisoners of war, have also been sanctioned.
As part of this package, the EU Council also imposed new measures on Belarus to restrict its support for the Russian war effort.
Diplomats. In addition, the package includes a new mechanism to restrict the movement of Russian diplomats within the EU, through a notification procedure and authorisation for Member States to take appropriate national measures regarding the entry or transit of Russian diplomats on their territory, with a transition period of three months. Restrictions on the movement of diplomats had been encouraged for several months.
See the Official Journal: https://aeur.eu/f/j3t
American sanctions. For its part, the United States has also adopted sanctions against the Russian oil sector, with measures against Rosneft and Lukoil. All their assets will be frozen in the United States and American companies will be prohibited from doing business with them.
“These are huge sanctions (...) And we hope they won’t last too long. We hope that the war will come to an end”, said US President Donald Trump.
On his arrival at the European Council (see other news), Ukrainian President Volodymyr Zelensky welcomed the adoption of European sanctions, which he described as “crucial”, and the announcement of US measures. (Original version in French by Camille-Cerise Gessant)