EU Approves New Russia Sanctions Package, Set to Ban Its LNG by 2027
EU member states this week signed off on a new package of Russia-related sanctions that will ban imports of Russian liquefied natural gas, designate more shadow fleet vessels, target more Russian and foreign banks, introduce new export controls and more. The package, proposed in September (see 2509190029) and approved this week, came just after the U.S. sanctioned major Russian energy companies Rosneft, Lukoil and their subsidiaries because Russia hasn't agreed to a peace deal to end its war in Ukraine (see 2510220050).
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Under the new EU measures, imports of Russian liquefied natural gas will be banned starting in January 2027 within six months for short-term contracts. The EU is also tightening its existing transaction ban on Rosneft and major state-owned oil producer Gazprom Neft by eliminating an exemption for certain oil and gas imports from those companies into the EU.
Along with a range of new designations, export restrictions and other financial restrictions, the package targets Chinese entities that the EU said are “significant buyers” of Russian crude oil, including two refineries and an oil trader. The EU also sanctioned businesspeople and companies forming part of the Russian military-industrial complex, as well as operators from the United Arab Emirates and China producing military and dual-use goods or supplying them to Russia.
The sanctions notably target crypto platforms tied to Russia sanctions evasion, the first time the EU is sanctioning those types of financial services. “For the first time, the new measures also prohibit the use of that cryptocurrency,” the EU said. “This step marks a significant evolution in the EU's sanctions regime. By addressing the use of stablecoins and offshore exchanges, the EU aims to close loopholes and reinforce the integrity of its financial sanctions framework.”