The European Union has announced its 19th sanctions package against Russia, introducing tougher measures on energy companies, shadow tankers, and foreign oil buyers that continue to trade in breach of EU policy. The proposed sanctions, revealed on September 19, reflect a growing shift toward targeting Russia’s international energy trade flows, with China among the third countries under scrutiny.
Clampdown on Russian Energy Majors
The new package proposes a full transaction ban on Russian energy giants Rosneft and Gazprom Neft, alongside asset freezes on companies supporting Moscow’s war economy. These firms, responsible for supporting around 2 million b/d of oil exports this year, operate nearly 20 refineries with a combined capacity of close to 3 million b/d.
Previous EU and US sanctions had already imposed partial restrictions, including penalties on Rosneft’s shipping arm and Gazprom Neft’s foreign affiliates, but the latest measures take aim at their broader international activities.
Targeting Shadow Tankers and Price Cap Breaches
A major focus of the sanctions is the enforcement of the EU’s adjusted oil price cap. The European Commission has identified 118 new “shadow tankers” accused of breaching the cap, proposing their addition to the existing blacklist of 442 vessels.
Re-insurance for these vessels would also be banned, in an effort to cut off financial and logistical support. This follows growing evidence of covert tanker networks enabling Russia to bypass restrictions, undermining the EU’s earlier sanctions framework.
Third-Country Involvement and Global Impact
For the first time, the EU is signaling a stronger stance against third countries trading Russian oil, including China Moscow’s second-largest buyer. Officials say this builds on measures from the 18th sanctions package, which had already blacklisted companies in India, Turkey, and China.
The tightening sanctions align with US efforts to impose secondary restrictions on Russia’s largest energy customers, underscoring a coordinated transatlantic push to restrict Russia’s oil revenues.
The EU’s 19th sanctions package represents a significant escalation in its efforts to curtail Russia’s oil revenues, which remain a cornerstone of the Kremlin’s war economy. By targeting energy majors, shadow tankers, and third-country trade flows, the bloc is signaling its intent to close loopholes and strengthen enforcement.
While Russia’s oil sector continues to face mounting pressure from sanctions, drone attacks, and economic stagnation, the resilience of Urals crude prices highlights the ongoing challenges of cutting Moscow off from global markets.
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Source: S&P GLOBAL
