EU adopts 21st sanctions package against Russia

The European Union (EU) has adopted the 21st package of economic sanctions against Russia, aimed at limiting oil revenues flowing to its war chest.

IMAGE: Flag of the European Union. Getty Images

The EU has agreed on a new package of sanctions against Moscow, targeting another 41 vessels that are allegedly a part of Russia's shadow fleet used to circumvent the price caps set on Russian crude and oil products.

This brings the total number of sanctioned vessels to more than 673, according to the European Commission (EC). The additional ships include five bunkering vessels that have regularly refuelled sanctioned Russian tankers.

These vessels are subject to a port access and services ban, the EC said in a statement.

The commission has targeted eight entities and one individual active in Moscow’s shadow fleet ecosystem, including companies operating on behalf of Russia's oil companies and a crewing agency providing support to the shadow fleet.

Last year, the EC had proposed to lower the oil price cap on Russian crude oil to $47.6/bbl from $60/bbl. The commission has now decided to suspend the adaptation for a year, until July 2027.

The price cap on Russian oil, implemented by Washington and its allies (the G7 group of countries), are a strategic measure aimed at reducing Russia's export revenue.

The commission has targeted several Russian ports and refineries – including three Russian and a major Belarusian oil refinery – that process Russian crude oil.

The EC has banned 18 entities and one individual in the oil sector and a company created to sell Belarusian petroleum products within Russia.

“The package broadens the list of oil traders subject to a transaction ban, given their role as intermediaries for Russian oil trade in frustration of EU sanctions,” the EC said.

The EU adopted its 20th sanctions package against Moscow earlier this year, targeting 46 vessels that are allegedly a part of the Russia's shadow fleet.

A shadow fleet is made up of older vessels that intentionally evade regulations. By assembling a shadow fleet used to circumvent sanctions meant to restrict Russian oil revenues, the country has effectively traded outside the imposed price caps.

By Aparupa Mazumder

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