EU Seeks to Tighten Sanctions on Russia Over Ukraine War

European Commission President Ursula von der Leyen has called for the European Union to impose new sanctions on Russia's exports of liquefied natural gas (LNG), its shadow fleet of aging oil tankers, and major energy companies. The sanctions are aimed at pressuring Russia to leave the battlefield and come to the negotiation table, following its war on Ukraine. The EU has already agreed on 18 packages of sanctions against Russia, but the new measures must be endorsed by the 27 EU countries before they can take effect.

Key Takeaways:

• The European Commission proposes targeting 118 additional vessels from Russia's shadow fleet of ships transporting oil, bringing the total to over 560.
• Major energy trading companies Rosneft and Gazprom Neft will be subject to a full transaction ban, and other companies will be subject to an asset freeze.
• The sanctions would also include export restrictions on "items and technologies" that can be used on the battlefield.
• 45 companies in Russia and elsewhere would be hit for providing direct or indirect support to the Russian military industrial complex.
• The EU aims to prohibit Russian LNG imports by January 2027.
• The sanctions are intended to target refineries, oil traders, petrochemical companies, and third countries, including China.
• The commission wants to target those who fuel Russia's war by purchasing oil in breach of the sanctions.

Statistics:

• The EU is the biggest buyer of Russia's LNG cargoes, taking about half of what Russia exports.
• Russian LNG took up about 16% of the EU's total LNG imports last year.
• Over 2,500 "entities" have already been hit with sanctions, including banks, ministries, energy companies, and officials.
• Travel bans and asset freezes are the most common measures implemented.

Sources:

• The Associated Press
• European Commissioner President Ursula von der Leyen
• European Union's executive branch
• EU foreign policy chief Kaja Kallas
• The European Commission