New blow to Russia: EU adopts 20th package of sanctions dominated by Ukrainian proposals
The 20th package of EU sanctions demonstrates a high level of synchronization between Ukrainian proposals and decisions of European partners. About 70 percent of the points of the package of sanctions - both individual and sectoral - directly take into account the proposals of the Ukrainian side.
This confirms the main thesis: the sanctions proposed by Ukraine are an indicator and the basis for further restrictions by international partners.
A particularly important direction is to strengthen the fight against circumvention of sanctions. The EU has moved into the active phase of implementing the mechanism established in the 11th package, which allows for faster and more systematic blocking of channels for the illegal supply of goods through third countries.
Key aspects of the package of 20 measures:
- Personal restrictions and the military-industrial complex. More than 30 individuals from the Russian military-industrial complex, propagandists and oligarchs, as well as about 60 companies involved in circumventing sanctions, were added to the list. It is important that 36 of them were already under Ukrainian sanctions. This primarily concerns suppliers of components for the Russian defense-industrial complex.
- The EU has also expanded the list of entities subject to strict export restrictions: more than 50 companies from Russia and foreign countries are now deprived of access to dual-use technologies that could be used to strengthen the aggressor's defense potential. The Izhevsk plant, the Agency for Advanced Technologies, and many Chinese and Turkish manufacturers are under sanctions.
- Energy and logistics. For the first time, the EU has systematically approached the restriction of the "shadow fleet" ecosystem. 43 vessels were sanctioned (all at the proposal of Ukraine, 21 are already under Ukrainian sanctions), as well as ports (Tuapse and Murmansk), insurers and registrars. In particular, seven Russian refineries and infrastructure in Tuapse and Ryazan are now under restrictions, which significantly complicates Russia's export logistics. Ukraine added these ports to its lists two years ago, so this was a certain "know-how".
- The package of 20 sanctions significantly complicates the procurement and maintenance of vessels, especially LNG tankers and icebreakers, for the Russian Federation, which creates direct obstacles to the export of Russian gas. At the same time, Ukraine continues to insist on the introduction of a complete ban on the maritime transport of Russian oil and oil products.
- Financial and digital sectors. The package contains significant digital asset blocks. Based on our data, transactions with RUBx and digital ruble tokens are limited. Sanctions against 20 regional banks of the Russian Federation – Avers, Fora, Eurofinance Mosnarbank, Livoberezhny. The grounds are participation in trade for the military-industrial complex and presence in the occupied territories. Also, a number of financial institutions of third countries (in particular Kyrgyzstan: Keremet and Capital Bank of Central Asia) significantly narrow the scope for payment for dual-use goods.
- The list of goods whose export to the Russian Federation is prohibited has been expanded. The emphasis is on non-ferrous metals (nickel, copper), chemical compounds and equipment for welding and metallurgy. The ban specifically includes products for servicing machines, such as vulcanized rubber threads and ropes, bolts, nuts and screws made of non-ferrous metals or steel, as well as cast iron and steel products for metallurgy. The sanctions also apply to welding equipment, transport fuses and the agricultural sector, including tractors with a power of over 130 kW and heterocyclic compounds necessary for the production of pesticides. This is a direct restriction of the resource base for the production of weapons of mass destruction.
- Within the framework of the 20th package, the export of CNC machines and radio equipment to Kyrgyzstan is limited due to the risk of their re-export to the Russian Federation for military needs - also based on Ukrainian data.
Priorities for work on the 21st package
Consultations on the next step have already begun. Work on the upcoming 21st package of sanctions will focus on further ostracizing Russian financial institutions, including expanding the list of sanctioned banks and ultimately blocking channels for using cryptocurrencies to circumvent restrictions.
In the energy sector, the priority remains to strengthen the embargo, in particular by further restricting the export of Russian oil and oil products by sea. In parallel, work is being done to strengthen technological control and improve mechanisms for tracking weapons components to prevent dual-use goods from entering Russia. In addition, work will continue on personal sanctions against representatives of big business, oligarchs and patriarchs, who have so far evaded restrictions, despite their direct contribution to financing the Russian military budget.