EU Imposes New Sanctions on Russian Banks and Industry in 16th Package

European Union envoys have agreed on a 16th package of sanctions against Russia, targeting its financial sector, energy exports, and industrial manufacturing.

The sanctions, introduced in response to Russia’s full-scale invasion of Ukraine, are expected to be formally adopted by EU foreign ministers on Monday, marking the third anniversary of the war.

According to EU diplomats, the latest measures include restrictions on Russian banks, a ban on primary aluminium imports, new oil and gas restrictions, and expanded export bans. Additionally, dozens of new entities and individuals will be added to the EU’s sanctions list, along with restrictions on Russian media outlets.

Banking Sector Under Increased Pressure

As part of the sanctions, the EU is cracking down on Russian regional banks for their role in helping Moscow circumvent existing restrictions. The latest package will remove access to the global bank messaging system SWIFT for 13 Russian lenders and ban transactions with three additional Russian banks. These measures are designed to tighten financial constraints on Russia and further isolate its banking system from international markets.

Ban on Russian Aluminium Imports

The EU has also taken a major step in restricting Russian aluminium imports, banning primary Russian aluminium from entering the bloc. This measure will take effect one year after the legislation is officially published in the EU’s Official Journal next week.

During the one-year transition period, the EU will still be allowed to import up to 275,000 tonnes of aluminium before the full ban takes effect.

Tighter Controls on Oil and Gas Trade

The EU has significantly expanded its restrictions on Russia’s oil and gas sector by introducing new measures to strengthen the G7 oil price cap and target sanctions circumvention.

Key actions include:

• Adding 73 new vessels to the sanctions list, mostly oil tankers, bringing the total number of restricted ships to 152.

• Banning transactions with Russian ports and airports suspected of being used to bypass the oil price cap and facilitate the transfer of drone and missile components.

• Introducing a service ban targeting oil and gas refineries.

• Expanding future sanctions criteria to include owners and operators of Russia’s shadow fleet, ship captains, and individuals supporting the military.

Export Bans Target Russian Manufacturing

The sanctions package also seeks to cripple Russia’s manufacturing sector by imposing new export bans on critical industrial goods. The prohibited products include:

• Chromium and chemical precursors, which are essential for manufacturing and chemical production.

• Components used in CNC machines, computer-controlled machines used for industrial cutting and drilling.

By limiting Russia’s access to key industrial materials, the EU aims to undermine its ability to sustain military production.

Expansion of Sanctions Lists

The latest package will add 53 new entities to the EU’s transaction ban, specifically targeting companies involved in selling high-priority goods to Russia.

Additionally:

• 48 individuals and 35 entities will be placed on the general sanctions list, which includes asset freezes and EU travel bans.

• Broadcasting licenses for eight Russian media outlets will be suspended as part of the EU’s efforts to combat disinformation.

The 16th sanctions package marks another significant step in the EU’s strategy to tighten economic pressure on Russia, aiming to limit its ability to finance its war efforts and sustain its military operations.

By fLEXI tEAM