EU adopts 17th sanctions package against Russia

This article is brought to you in association with the European Commission.

The European Commission welcomes the Council’s adoption of the 17th Russia sanctions package. New EU sanctions increase the cost for Russia to continue its war, adding pressure on its already strained and fragile economy. This is a clear signal of the EU’s continued and unwavering support for Ukraine.

This package aims to further restrict Russia’s access to battlefield technologies and cut revenues from Russian energy imports by targeting an unprecedented number of vessels from Russia’s shadow fleet. The package also expands the number of individual and entity listings. Moreover, it prolongs an existing exemption from the oil price cap for the Sakhalin-2 project to ensure Japan’s energy security.

The 17th package contains the following key elements:

ANTI-CIRCUMVENTION MEASURES

The EU has listed 189 additional vessels that are part of the shadow fleet of oil tankers or contribute to Russia’s energy revenues, bringing the total number of listings to 342. The vessels have been identified together with Member States and the European Maritime Safety Agency (EMSA). They are now subject to a port access ban and a ban on provision of services.

The 17^th package represents the largest single G7 sanctions action targeting shadow fleet vessels.

EU vessels listings, along with efforts from partner countries like the UK and US, are significantly reducing Russia’s ability to gain revenues from evading the price cap for oil, making it increasingly difficult to replace sanctioned vessels. All in all, exporting oil has become more complex and costly for the Kremlin, as these vessels are no longer able to operate business as usual. According to the latest data from the Oil Price Cap Coalition, there is a decrease in volumes transported and numbers of ships carrying Russian oil. Since the EU began listing these vessels, Russian crude oil deliveries have decreased on them by 76%.

This package also adds 31 new companies to the list providing direct or indirect support to Russia’s military industrial complex, or engaged in sanctions circumvention.This includes 18 companies established in Russia, and 13 established in third countries (6 Turkey, 3 Vietnam, 2 UAE, 1 Serbia and 1 Uzbekistan).

ADDITIONAL LISTINGS

Today’s package includes 75 additional listings, including 17 individuals and 58 entities, responsible for actions undermining the territorial integrity, sovereignty, and independence of Ukraine. They are now subject to asset freezes and prohibition to make economic resources available, and – in the case of individuals – also to travel bans. The new listings affect mostly the Russian military and defence sectors. The new listings make use of new criteria related to shadow fleet enablers, and the new criteria for the military industry, both adopted in the 16th package. In addition, the listings include one Russian shipping company (Joint Stock Company Volga Shipping)important for generating revenue. Finally, the new listings also target actors involved in the looting of cultural heritage, and others who were active in occupied territories.

TRADE MEASURES

The package further expands the list of dual use and advanced technology items subject to export restrictions with the aim of cutting Russia off from key technologies, in particular for military use, such as:

• chemical precursors to energetic material. There is evidence these chemical precursors are being used, directly or indirectly, as propellants for Russian missiles. Consequently, items such as sodium chlorate, potassium chlorate, aluminium powder, magnesium powder and boron powder were added to this package.
• spare parts and components of high-precision Computer Numerical Control (CNC) machine tools. While machine tools are already largely covered by sanctions already in place, spare parts such as ball screws and encoders are essential for Russia to maintain its industrial base serving the military system.

By restricting exports of these sensitive items, and by subjecting them to anti-circumvention measures such as the transit ban, it will become significantly more challenging for Russia to source these resources.

“SAKHALIN EXEMPTION”

The 17th package includes an extension of the exemption from the oil price cap, allowing for the transport of crude oil originating in the Sakhalin-2 Project in Russia by vessel to Japan, based on energy security concerns. The extension is granted for one year until 28 June 2026.

Impact of our sanctions

EU sanctions remain at the core of the EU’s response to Russia’s unjustified military aggression against Ukraine. They have a clear objective – to undermine Russia’s ability to finance and sustain its war against Ukraine. Economic data clearly indicates that EU sanctions are working.

Russia is now selling its resources at a discount, and buying what it needs at a high premium, resulting in a clear negative impact on its economy. The Russian economy is operating near full capacity and battling high and rising inflation, currently above 10%, and estimated to reach 9.3% in 2025, far exceeding its target of 4%. The Government’s deficit is skyrocketing, and interest rates are at 21%. Russia has also considerably drawn from its National Wealth Fund to finance its budget deficit. The value of liquid assets held by the Fund is today 65% lower than before the war.

Moreover, thanks to the EU and G7 energy sanctions and to the REPowerEU policy of diversification of supply and replacement of Russian imports Russia’s oil and gas revenues have fallen from 100 billion euro in 2022 to 22 billion in 2024. This is a reduction of almost 80% compared to before the war.

Through export restrictions the Russian economy is cut off from access to dual use goods, critical technologies, and industrial goods essential for its war effort, such as spare parts, machinery, and electronics. Russia has lost over 60 % of what it received from trading with the EU before the war. 

The EU maintains strong international coordination on sanctions within the G7, and with other like-minded partners. As guardian of the EU Treaties, the European Commission monitors the enforcement of EU sanctions by EU Member States.

Russia is constantly looking for ways to evade sanctions. This is clear evidence that such measures are having an impact, but equally it means continued efforts are required in tackling circumvention. EU Sanctions Envoy David O’Sullivan continues his outreach to key third countries to combat circumvention. Working with like- minded partners, we have also agreed a list of Common High Priority sanctioned goods to which businesses should apply particular due diligence, and which third countries must not re-export to Russia. In addition, within the EU, we have also drawn up a list of sanctioned goods that are economically critical and on which businesses and third countries should be especially vigilant.

For More Information

Link to Official Journal (legal texts will be available soon)

More information on sanctions

EU Sanctions Helpdesk