EU Implements Strong Sanctions Against Russia: Targeting Liquefied Natural Gas and Shadow Fleet

The European Union has introduced its 19th package of sanctions against Russia, a significant escalation that now includes measures aimed at Russian liquefied natural gas (LNG) for the first time. This decision was officially approved as EU leaders convened in Brussels for crucial discussions on bolstering Ukraine's defense amidst its ongoing conflict with Russia. European Commission President Ursula von der Leyen took to social media platform X to announce, "For the first time we are hitting Russia's gas sector, the heart of its war economy. We will not relent until the people of Ukraine have a just and lasting peace." One of the standout elements of this latest sanction package is the phased ban on Russian LNG imports, which aims to bring an end to all trade in Russian-sourced gas by January 1, 2027. The EU's decision comes in response to record LNG purchases made by Europe in 2024, following a dramatic decline in pipeline gas supplies, which inadvertently strengthened Russia's economic position and hindered support for Ukraine. Additionally, the EU has expanded its sanctions to include 117 vessels associated with what is deemed Russia's 'shadow fleet.' This brings the total number of ships under sanction to 558, effectively barring them from accessing EU ports or obtaining insurance services. With estimates suggesting that Russia operates between 600 to 1,400 unregulated tankers, these aging vessels are typically under obscure ownership structures and are utilized to transport oil at prices exceeding the Western-imposed price cap, especially to countries like China and India. The G7 initially established this price cap for Russian oil in December 2022 as a move to diminish Russian revenues that finance its invasions. In another significant maneuver, the freedoms of Russian diplomats operating within the EU have been curtailed; they are now required to notify national authorities regarding any intentions to travel to other EU member states. Danish Foreign Minister Lars Løkke Rasmussen emphasized the importance of the ban on LNG imports, stating that it is a crucial step toward fully eliminating Russian energy reliance in the EU. "The sanctions have real impact and are hurting the Russian economy. Russia is finding it increasingly difficult to finance its illegal war of aggression against Ukraine," he remarked. The approval of these sanctions came after Slovakia removed its prior veto, and coincided with the United States sanctioning Russia's two largest oil companies, Rosneft and Lukoil—the first measures taken against Putin's regime since Donald Trump's return to the White House in January. Notably, in what appears to be a thawing of relations between Brussels and the Trump administration, von der Leyen expressed appreciation for discussions she held with U.S. Treasury Secretary Scott Bessent about the parallel U.S. sanctions. "This is a clear signal from both sides," she affirmed, marking the concurrent approval of the EU measures. As part of the summit, EU leaders are expected to showcase their support for Ukraine's President Volodymyr Zelenskyy, who is participating in the talks after a tumultuous week. This included a reportedly confrontational meeting with Trump, who sought to pressure Zelenskyy into conceding territory. However, plans to approve a multi-billion dollar loan for Ukraine, secured against Russian assets frozen in the EU, are facing delays. Belgium remains concerned about the proposal, which involves the utilization of €183 billion (approximately $159 billion) in Russian assets held at Euroclear, a central securities depository in Brussels. Belgian Prime Minister Bart De Wever expressed his opposition to proceeding with the plan without sufficient guarantees, underlining the unprecedented nature of the situation: "Even during World War II, immobilized assets were never touched. This is a very important step." Related Sources: • Source 1 • Source 2