EU Approves New Russia Sanctions, Says More 'In the Works'

The European Commission said the measures, which are the EU’s 17th package of sanctions since Russia invaded Ukraine in 2022, are working to degrade Moscow’s war machine.

“Russia is now selling its resources at a discount, and buying what it needs at a high premium, resulting in a clear negative impact on its economy,” it said. And EU export restrictions have cut off Russia “from access to dual use goods, critical technologies, and industrial goods essential for its war effort, such as spare parts, machinery, and electronics,” the commission said, adding that Russia has “lost over 60% of what it received from trading with the EU before the war.”

The commission also noted that Russia is “constantly looking for ways to evade sanctions,” and the EU is working with other countries to prevent sanctions circumvention. David O'Sullivan, the EU’s sanctions envoy, is reaching out to “key” countries to ask them to ramp up efforts to combat sanctions evasion, it said.

The bloc also recently issued an updated list of sanctioned goods that are “economically critical” for Russia “and on which businesses and third countries should be especially vigilant.”

The commission said more restrictions are coming, even as the U.S. tries to broker peace talks between Russia and Ukraine.

“While [Russia President Vladimir] Putin feigns interest in peace, more sanctions are in the works,” said Kaja Kallas, the EU’s foreign affairs chief. “Russia’s actions and those who enable Russia face severe consequences. The longer Russia persists with its illegal and brutal war, the tougher our response will be.”

The new sanctions target 189 more vessels that the commission said are part of Russia’s so-called shadow fleet -- the tankers helping Russia transport oil in violation of the price cap imposed by the Group of 7 nations and others. The designations represent the “largest single” sanctions action by a G7 nation targeting shadow fleet vessels, the commission said.

The EU also sanctioned 31 new companies for providing direct or indirect support to Russia's military industrial complex or for helping Russia evade sanctions. That includes 18 companies in Russia, six in Turkey, three in Vietnam, two in the United Arab Emirates, one in Serbia and one in Uzbekistan.

Other sanctions target 17 people and 58 entities -- mostly those operating in Russia’s defense sector -- for undermining Ukrainian independence. The commission specifically called out Joint Stock Company Volga Shipping, a newly sanctioned Russian company that is “important for generating revenue.” More designations target “actors involved in the looting of cultural heritage, and others who were active in occupied territories,” the commission said.

Along with the designations, the EU is also expanding its export control list by adding certain “chemical precursors to energetic material,” saying those precursors are being used as “propellants” for Russian missiles. The bloc also added related items to the list “such as sodium chlorate, potassium chlorate, aluminium powder, magnesium powder and boron powder.”

The EU also placed new export controls on certain spare parts and components of high-precision computer numerical control machine tools, otherwise known as CNC machine tools. “While machine tools are already largely covered by sanctions already in place, spare parts such as ball screws and encoders are essential for Russia to maintain its industrial base serving the military system,” the commission said. By placing new restrictions and “anti-circumvention measures” on those items, “such as the transit ban, it will become significantly more challenging for Russia to source these resources."

The EU also renewed an oil price cap exemption for certain crude oil coming from Russia’s Sakhalin-2 Project. The exemption, extended for one year until June 28, 2026, applies to oil transported by vessel to Japan and is “based on energy security concerns.” The U.S. maintains a similar exemption.