Allies Roll out More Russian Sanctions; US Mum

As Moscow's war against Ukraine enters its fourth (or eleventh) year, the European Commission announced the Council's adoption of the 16th sanctions package against Russia. As is customary, the United Kingdom announced complementary sanctions.

Unlike with prior initiatives, the United States did not join in the effort, reflecting the new rapprochement between Washington and the Kremlin.

While both sanctions packages share strategic objectives—undermining Russia’s military capabilities and economic strength—the UK’s measures highlight individual accountability and cross-border financial sanctions, whereas the EU’s package prioritizes sector-specific restrictions and broader infrastructure disruption.

The 16th sanctions package intensifies restrictions on key sectors of Russia's economy, including energy, trade, transport, infrastructure, and financial services.

Notably, it introduces strengthened anti-circumvention measures mirrored in the Belarus sanctions regime and updates existing sanctions regarding Crimea, Sevastopol, and non-government-controlled regions of Donetsk, Kherson, Luhansk, and Zaporizhzhia.

"There is no doubt about who the aggressor is, who should pay and be held accountable for this war. Every sanction package deprives the Kremlin of funds to wage war. With talks underway to end Russia’s aggression, we must put Ukraine in the strongest possible position. Sanctions provide leverage," said Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission.

The EU’s 16th sanctions package broadly targets Russia’s energy, trade, transport, infrastructure, and financial sectors. It specifically bans primary aluminium imports, tightens restrictions on dual-use goods like chemical precursors and CNC machine tools, and introduces measures against disinformation by suspending additional Russian media outlets.

• The UK’s latest sanctions, meanwhile, emphasize entry bans on influential Kremlin-linked individuals, sanctions foreign financial institutions (e.g., Kyrgyzstan’s OJSC Keremet Bank), and explicitly targets Russia’s global supply chain by sanctioning firms from Central Asia, Turkey, India, Thailand, and China supplying components for Russian military equipment.

Key components of the EU package include:

Anti-Circumvention Measures:

• 74 additional vessels targeted, bringing the total listed vessels to 153, primarily affecting Russia's "shadow fleet."

• New criterion added to list entities involved in operating unsafe oil tankers.

• Targeted export restrictions imposed on 53 entities supporting Russia’s military-industrial complex, including 34 located outside Russia.

Additional Listings:

• 83 new designations (48 individuals, 35 entities) linked to military activities, sanctions evasion, crypto asset exchanges, and maritime sectors.

• Introduction of a new listing criterion targeting entities affiliated with Russia’s military-industrial complex.

Trade Measures:

• Ban on EU imports of primary Russian aluminium, with a transitional quota mechanism allowing imports of 275,000 tons over 12 months.

• Expanded dual-use export restrictions on chemicals, CNC machine tool software, video-game controllers, chromium ores, and compounds.

• Additional export restrictions targeting minerals, chemicals, steel, glass materials, and fireworks due to their military uses.

Energy Measures:

• Prohibition of temporary storage or placement of Russian crude oil or petroleum products in EU ports.

• Extension of existing prohibitions on supplying goods, technology, and services to Russian LNG and crude oil projects, including the Vostok oil project.

• Ban expanded on exporting oil and gas exploration software to Russia.

Transport Measures:

• Extension of flight bans to include third-country carriers involved in Russia's domestic flights or supplying aviation goods to Russian airlines.

• Restrictions on increasing Russian ownership beyond 25% in EU road transport companies.

Infrastructure Measures:

• Full transaction bans targeting specific Russian infrastructure, including Moscow's Vnukovo and Zhukovsky airports, regional airports, and several strategic ports.

• EU operators prohibited from providing construction services in Russia.

• The UK sanctions did not include specific infrastructure-related bans but focused instead on broader financial and military-industrial measures.

Financial Sector Measures:

• Thirteen additional Russian financial institutions prohibited from accessing specialized financial messaging services.

• Transaction bans extended to three banks using Russia’s SPFS messaging system to circumvent EU sanctions.

The UK’s announcement aligns with Prime Minister Starmer’s diplomatic strategy, emphasizing international cooperation, evidenced by his forthcoming meeting with U.S. President Donald Trump.

• The EU’s sanctions reflect continued collective European commitment to economic and political containment of Russia, emphasizing internal enforcement and anti-circumvention measures, particularly through alignment with Belarus sanctions.

• Expanded transaction bans targeting institutions facilitating circumvention of the Oil Price Cap.

• The UK introduced a novel approach by directly sanctioning foreign banks outside Russia actively aiding Moscow’s war efforts.

Measures Against Disinformation:

Broadcasting activities suspended for eight additional media outlets supporting and justifying Russia's aggression.

The Commission underscored that EU sanctions remain central to degrading Russia's military and technological capabilities and reducing Kremlin revenues used to finance the war. The EU continues actively addressing sanctions circumvention, engaging third countries for closer cooperation, and maintaining vigilance on critical goods.

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