On Friday 6 February, the President of the European Commission, Ursula von der Leyen, presented her proposal for the twentieth package of sanctions against Russia, calling on the Member States to swiftly adopt these new measures. The Member States’ ambassadors to the EU will meet on Monday 9 February in the afternoon to discuss this proposal. The aim is to adopt the twentieth package on the fourth anniversary of the Russian invasion of Ukraine, on 24 February.
“As important peace talks are underway in Abu Dhabi, we must be clear-eyed: Russia will only come to the table with genuine intent if it is pressured to do so. This is the only language Russia understands. That is why we are stepping up today”, explains Ursula von der Leyen in a press release.
The new sanctions package covers energy, financial services and trade.
Energy. The Commission is proposing a full maritime services ban for Russian crude oil, in coordination with like-minded partners, following a decision of the G7. “It will slash further Russia’s energy revenues and make it more difficult to find buyers for its oil”, according to Ms von der Leyen.
The President also wants to add 43 vessels from the ‘shadow fleet’, bringing the total to 640. “We are also making it more difficult for Russia to acquire tankers to be used for the shadow fleet and add sweeping bans on provision of maintenance and other services for LNG tankers and icebreakers to further dent gas export projects”, added Ms von der Leyen. These measures will complement the ban on LNG imports provided for in the 19th sanctions package and the RepowerEU Regulation.
Financial services. The Commission is proposing a second set of measures, aimed at further constraining the Russian banking system and its ability to create alternative payment channels to fund economic activity. “We are listing 20 more Russian regional banks, and we will take measures against crypto currencies, companies trading them and platforms enabling crypto trade, to close an avenue for circumvention”, she says.
The Commission also intends to target several banks in third countries involved in facilitating illegal trade in sanctioned goods.
Trade. The Commission also wants to tighten restrictions on exports to Russia with new bans on goods and services - “from rubber to tractors and cybersecurity services, worth over €360 million”. It also proposes to introduce new import bans on metals, chemicals and critical minerals not yet subject to sanctions, “worth over €570 million”.
Ms von der Leyen also supports further export restrictions on items and technologies used for Russia’s battlefield effort, such as materials used to produce explosives, and is proposing a quota on ammonia to cap existing imports.
Combating circumvention of measures. The Commission intends to activate the anti-circumvention tool for the first time, by prohibiting the export of any computer numerical control machines and radios to jurisdictions where there is a high risk that these products are re-exported to Russia.
Finally, it intends to implement stronger legal safeguards for EU companies to protect them from violations of their intellectual property rights or from unfair expropriation in Russia due to abusive court rulings in connection with sanctions.
The President of the Commission felt that the European sanctions taken to date had been effective. According to her, Russian tax revenues from oil and gas will be 24% lower in 2025 than in 2024, and “oil and gas revenues in January will be the lowest since the war began”. Interest rates in Russia stand at 16% and inflation remains high, she added.
About the sanctions, Ms von der Leyen warned “we will continue to use them until Russia engages in serious negotiations with Ukraine for a just and lasting peace”. (Original version in French by Camille-Cerise Gessant)