BRUSSELS - The European Commission is proposing to impose sanctions on 118 more ships in Russia's shadow fleet and ban transactions for other banks in Russia and third countries in a new 19th sanctions package against Russia. Commission President Ursula von der Leyen made the announcement today, adding that Russia has made its contempt for diplomacy and international law fully clear in recent months in the wake of its stepped-up attacks on Ukraine, among the biggest since the start of the war. The aim of the sanctions, according to EU diplomatic chief Kaja Kallas, is to hit Russia where it gets its money.
The restrictions will target cryptocurrencies for the first time, as well as additional bans on the export of goods and technologies used on the battlefield.The sanctions affect 45 companies in Russia and third countries that provide direct or indirect support to the Russian military-industrial complex. The sanctions must now be unanimously approved by all EU Member States.
"Russia has unfortunately shown the full extent of its contempt for diplomacy and international law over the past month," von der Leyen said in a statement. "It has launched the largest drone and missile attacks against Ukraine, hitting government buildings and civilian homes as well as the EU office in Kiev," she said, adding that overall the Russian threat against the European Union is growing. In this context, she mentioned the recent Russian violations of EU airspace, specifically in Poland and Romania. "These are not the actions of someone who wants peace. President Putin is re-escalating the situation. In response, Europe is increasing its pressure," the EU executive added.
On energy, von der Leyen mentioned that Russia's war economy is sustained by fossil fuel revenues. The EU therefore wants to reduce these revenues. "That is why we will ban the import of Russian LNG (liquefied natural gas, CTK) to European markets. It is time to turn off the taps," the Commission chief said.
EU diplomatic chief Kaja Kallas issued her statement independently of von der Leyen, as she is currently visiting Brazil. "Russia's main source of income to finance its illegal war is still energy exports," She told Kallas. The Commission therefore proposes, firstly, a complete ban on Russian LNG imports after 1 January 2027, and secondly, "the lifting of the remaining exemptions for Rosneft and Gazpromneft and the extension of sanctions to the Russian shadow fleet and its entities, including 118 new vessels".
"We want to hit Russia where it gets its money. No sector is taboo," She wrote Kallasová on the social network X. She said the Commission's proposal aims to crack down on Russian financial fraud in third countries, which includes cryptocurrencies, and to target Russia's Mir payment system. The European diplomatic chief also said it was necessary to cut off supplies to Russia's military industry so that it could not feed its war machine. The EU export ban will be extended to include other chemicals, metal components, salts and ores, and export controls will be tightened for entities from Russia, China and India.
"In addition to waging war in Ukraine, Russian forces continue to separate Ukrainian children from their families and deport them to re-education camps. Today, we are proposing sanctions against those involved in the abduction and indoctrination of Ukrainian children," Kallas added another area included in the sanctions package.
Britain also announced today the extension of its sanctions over Russia's war in Ukraine, Reuters reported. Two Georgian businessmen, whom the British government accused of spreading Russian propaganda and having close ties to Moscow, are now on its sanctions list. Britain has also imposed sanctions on two Georgian companies and two tankers that were carrying Russian oil into the country as part of a shadow fleet.
The Commission chief said on Tuesday that the EU executive would propose an early end to imports of Russian fossil fuels into EU countries. She made the announcement after a phone call with US President Donald Trump, which included stepping up joint pressure on Russia over the war in Ukraine. The European Commission's June proposal mentioned the end of 2027 as far as the end of fossil fuel imports is concerned. Poland on Wednesday called on other EU member states to stop importing Russian fossil fuels by the end of 2026. Russian gas and oil still flow mainly to Hungary and Slovakia. Today, Kallas mentioned only Russian LNG imports, but did not comment on the reduction of overall gas imports.
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