EU Calls for Maritime Service Ban Targeting Russia's Shadow Tanker Fleet
The European Commission, the executive branch of the European Union, took the wraps off its proposed 20th sanction package against Russia since the start of the war in Ukraine, saying the time has come to slash Russia’s energy revenues. The proposed new package again targets the shadow fleet and Russia’s energy industry, as well as adding further sanctions on imports and exports and Russia’s regional banks.
The EU notes that “important peace talks are underway in Abu Dhabi,” with EU President Ursula von der Leyen saying, “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.”
In announcing the proposed new effort, the EU contends its sanctions are having a dramatic impact on the Russian economy. It said that Russia's fiscal revenues from oil and gas dropped by 24 percent in 2025 compared to the previous year. The EU contends it is at the lowest level since 2020, and is contributing to Russia’s widening fiscal deficit.
“Oil and gas revenues in January will be the lowest since the war began. Interest rates stand at 16 percent, and inflation remains high,” said von der Leyen.
The new package is designed to increase the pressure even further and timed to the fourth anniversary of the invasion of Ukraine in February 2022. The package requires the approval of the EU member states, and portions need to be coordinated with the G7. It targets energy, financial services, and trade.
The EU is calling for a “full maritime services ban for Russian crude oil.” It said the new ban would slash Russia’s energy revenues and make it more difficult to find buyers for the oil. The goal is also to make it more difficult for Russia to attract more tankers into the shadow fleet to maintain the oil trade.
The EU would also add another 43 tankers to its sanctions, bringing the total to 640 vessels. This is in addition to sweeping bans on providing maintenance and other services for LNG tankers and icebreakers.
This comes after the EU started in January using a formula to create a sliding scale on the existing oil price cap. It also said it would start a rolling list of tanker sanctions, adding vessels at regular intervals.
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The new import bans will include metals, chemicals, and critical minerals not yet under sanctions. The EU estimates the value at over €570 million. The export restrictions would include technologies Russia uses to produce explosives. The EU proposes a quota on ammonia to cap existing imports. It would also target 20 more Russian regional banks and tighten the ban on goods ranging from rubber to tractors and cybersecurity services. The EU sets the value of the ban on these goods at €340 million.
Another element of the new package seeks to cut sanction evasion. For the first time, the anti-circumvention tool would prohibit exports of certain computer and radio equipment to jurisdictions where the EU says there is a high risk that the products would be re-exported to Russia.
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