EU’s 21st Sanctions Package Targets Russian Banks, Oil and Crypto
By Julia Payne
Overview of the EU’s Latest Sanctions Against Russia
BRUSSELS, July 23 (Reuters) - The European Union adopted on Thursday its 21st package of sanctions against Russia over its war in Ukraine. The new measures target banks, cryptocurrency networks, oil traders, the shadow fleet and Russian energy revenues.
The package includes 218 designations - 170 entities and 48 individuals - making it the bloc's largest sanctions round in four years. The new listings take the total number of designations to nearly 3000.
The measures come as EU officials seek to increase pressure on Russia's vulnerable financial system. A European intelligence report seen by Reuters warned in June that Russia risks an "explosive" banking crisis.
Here are the main elements of the package:
Financial System Sanctions
Asset Freezes and Transaction Bans
FINANCIAL SYSTEM
- Full asset-freeze sanctions on 94 Russian financial institutions, nearly all banks
- 33 Russian banks hit with transaction ban that includes disconnection from the SWIFT international payments system
- 4 third country banks in Mongolia, Kyrgyzstan and Russian banking subsidiaries in India
- Moscow's stock exchange was added to the sanctions list
- Transaction bans on 14 third-country crypto platforms in Georgia, Panama, Marshall Islands, Belarus and United Arab Emirates
- 4 designations including in Africa linked to A7 crypto network, a Russia-linked cross-border payment company whose rouble-pegged A7A5 stablecoin was banned in a previous package
- New legal basis created to ban transactions with all crypto operators in a third country that helps Russia evade EU sanctions
Oil and Shadow Fleet Restrictions
Oil Price Cap and Shadow Fleet Measures
- EU freezes Russian oil price cap at $44.10 per barrel for 12 months, preventing an automatic increase that would have raised it to around $58.50
- 41 shadow fleet vessels listed taking total to over 670 ships
- Expands criteria to list vessels that provide services or refuel shadow fleet tankers
- New rule enables EU countries to confiscate and sell cargoes carried by detained shadow-fleet vessels
- 18 entities, 1 person added to sanctions list including three Russian refineries and one in Belarus
- Transaction bans on five oil traders, two Russian ports and four airports
- Transaction ban with Georgia's Kulevi refinery with implementation delayed by six months
Liquefied Natural Gas (LNG) Measures
LNG Sales and Exemptions
- Obligation to notify of any LNG tanker sales
- One-year exemption allowing EU operators to continue transferring Russian LNG to non-EU countries under contracts signed before Feb. 24, 2022. The exemption is capped at 2025 volumes and can be renewed
- Other previously agreed restrictions on Russian LNG remain in place
- The EU's Russian LNG import ban will take effect from January 1, 2027
Military Industrial Complex Sanctions
Entities and Export Restrictions
- 56 entities and persons added to sanctions list for involvement in Russia's military industrial complex
- Out of those, 37 are directly linked to long-range Garpiya drones
- 51 entities added to list of companies that face export restrictions on dual-use goods and tech. Some are in third countries: China, including Hong Kong, India, Kazakhstan, Kyrgyzstan, Turkey, and UAE
- New export bans on specialty metals and alloys like nickel and beryllium powders
- The package also targets actors linked to Russia's satellite communications system being developed as an alternative to Starlink
Other Measures and Exemptions
Import Bans and Additional Listings
- Import bans on copper, nickel and lead ores, precious-metal ores, unwrought zinc, alkaline-earth metals, zinc and chromium oxides, glassware, imitation pearls and car parts
- Package lists more companies and individuals involved in Russian gold and diamond exports
- Listing of 8 individuals accused of promoting Russian propaganda
- Stronger protections for European companies against Russian court judgements linked to sanctions
- Agreement to create a mechanism allowing EU countries to deny entry to Russian soldiers who fought in Ukraine
- Extends Sakhalin-2 oil and LNG exemptions for Japan until March 31, 2028
- Grants South Korea an LNG exemption until March 31, 2028
(Reporting by Julia Payne; Editing by Sanjeev Miglani)
