The European Commission today proposed to EU member states a 19th package of sanctions against Russia over its war in Ukraine, particularly on Russian energy, said Commission spokeswoman Paula Pinho. European Commission President Ursula von der Leyen said today that “unfortunately, over the past month, Russia has shown the full measure of contempt for diplomacy and international law” and “has launched some of the largest drone and missile attacks on Ukraine since the beginning of the war, targeting state buildings and apartments, hitting our EU office in Kiev” and that “threats to the Union are growing”.
“In the last two weeks, Russian ‘Shahid’ drones have violated EU airspace in Poland and Romania. These are not the actions of someone who wants peace. President Putin has escalated time and again. And in response, Europe is increasing the pressure. That is why today I am presenting our 19th package of sanctions,” she said.
“First, on energy,” von der Leyen said, because “the Russian war economy is sustained by fossil fuel revenues. We want to reduce these revenues. That is why we are banning the import of Russian liquefied natural gas (LNG) into European markets. It is time to turn off the tap. We are ready. We have been saving energy, diversifying supplies and investing in low-carbon energy sources like never before. Today, these efforts are paying off.”
Also, “we have just lowered the crude oil price ceiling to $47.6. To step up enforcement, we are now sanctioning an additional 118 ships from the (Russian) ‘shadow fleet.’ In total, more than 560 ships are now listed under EU sanctions.”
Von der Leyen further said that “the major energy trading companies, Rosneft and Gazpromneft, will now be subject to a complete transaction ban. Other companies will also be subject to an asset freeze. We are now fighting those who fuel Russia’s war by buying oil in violation of sanctions. We are targeting refineries, oil traders, petrochemical companies in third countries, including China. In three years, Russian oil revenues in Europe have been reduced by 90%. Now we are turning the page forever”.
Second, she said, “we are targeting the financial loopholes that Russia uses to evade sanctions. We are introducing a transaction ban for additional banks in Russia and banks in third countries. We are stepping up our fight against sanctions circumvention. As evasion tactics become more sophisticated, our sanctions will adapt to keep up. Therefore, for the first time, our restrictive measures will target crypto platforms and prohibit transactions in cryptocurrencies. We are designating foreign banks linked to Russian alternative payment systems. And we are restricting transactions with entities in special economic zones.”
The third point of the 19th package of EU sanctions, said the European Commission President, is “new restrictions on direct exports for items and technologies used on the battlefield. We are also designating 45 companies in Russia and third countries. These companies provide direct or indirect support to the Russian military-industrial complex. In a war driven by innovation, cutting off Russia’s access to key technologies is crucial. These are drones, first and foremost.”
“Our economic analysis is clear – our sanctions are seriously affecting the Russian economy. The interest rate (in Russia) is 17%. Inflation is persistently high. Russia’s access to financing and revenues are constantly decreasing. And Russia’s overheated war economy is reaching its limits,” Von der Leyen said.
She said that “even more interesting is that when we talk directly to our partners who are talking to Russia, they say that among the first Russian demands is the easing of sanctions. We know that our sanctions are an effective tool of economic pressure. And we will continue to use them until Russia sits down at the negotiating table with Ukraine for a just and lasting peace.”
In parallel, she continued, “we are working on a new solution for financing Ukraine’s defense efforts based on blocked Russian assets. We must be very clear: This is a Russian war and the perpetrator must pay for it. With the cash balances associated with these Russian assets, we can provide Ukraine with a loan for reparations. The assets themselves will not be touched. And the risk will have to be borne collectively. Ukraine will only repay the loan when Russia pays reparations. We will come out with a proposal soon.”
Finally, Von der Leyen said, “we are coordinating our sanctions with our G7 partners, under the leadership of the Canadian presidency. And to support Ukraine in its fight for freedom, we are also working in line with the Coalition of the Willing. Europe has been with Ukraine from the very beginning. Faced with Russia’s escalation, Europe has risen to the challenge. We will continue to use all the means at our disposal to end this brutal war. I now call on member states to swiftly support these new sanctions. We want Russia to leave the battlefield and come to the negotiating table. This is the way to give peace a real chance.”
After talks with US President Donald Trump on Tuesday, the European Commission President announced “additional measures” by the EU against Russia, targeting in particular its energy sector, cryptocurrencies, and banks, AFP reported. Trump has asked his allies to stop buying Russian oil before he takes punitive measures against Moscow, and to impose tariffs on China for buying fuel from Russia.
The EU has already banned most Russian oil imports and reduced the share it imports from Russia from 29 percent in early 2021 to 2 percent by mid-2025. The Europeans are trying at all costs to keep the United States on their side in its efforts to support Ukraine in the war. And if they do not act quickly with sanctions, they fear they will give Trump a good reason to do nothing about Russia himself, diplomats said, the AP reported.
The European Union decided in December 2022 to stop all imports of Russian oil, but two EU countries, Slovakia and Hungary, were granted an exemption because of their dependence on Russian oil. The EU has also significantly reduced its dependence on Russian gas since the start of Russia’s invasion of Ukraine in February 2022, but not completely. In 2024, Russia still provided 19 percent of the EU’s gas supply, almost half of which was in the form of liquefied natural gas, which generates hundreds of millions of euros in revenue for Russia.
In June, the EC proposed a complete end to this dependence on Russian gas before the end of 2027. Von der Leyen also announced this week that she would propose additional sanctions on entities (banks, companies, etc.) from third countries, specifically China or India, that help Russia circumvent Western sanctions or sell its oil.
