Oil gains as EU adopts 20th sanctions package against Russia

The European Union (EU) has adopted the 20th package of economic sanctions against Russia, aimed at limiting oil revenues flowing to its war chest.

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The EU has agreed on a new package of sanctions against Moscow, targeting an additional 46 vessels that are allegedly a part of the 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 632, the European Commission (EC) said.

“The 20th sanctions package includes the basis for a future prohibition to transport Russian oil and petroleum products, in full coordination and discussion with the G7 and the price cap coalition,” the EU said in a statement.

Last year, the EC had proposed to lower the oil price cap on Russian crude oil to $45/bbl from $60/bbl. 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.

“Today we have finally broken the deadlock. On top of the €90-billion loan for Ukraine, we have also adopted the 20th sanctions package,” EC Vice President Kaja Kallas said.

The commission has banned 36 entities handling upstream and downstream segments of Russia’s energy sector, including oil exploration, extraction, refining, and transportation facilities.

The EU has also targeted two Russian ports - Murmansk and Tuapse – in its 20th sanctions package, as well as a third country port – Karimun Oil Terminal, in Indonesia – for its connections with Russian shadow fleet and circumvention of the oil price cap, it said.

“The Council will decide when the maritime services ban is to enter into force, considering an appropriate wind‑down period,” the EC said.

The Commission has prohibited EU operators' support to Russian LNG exports by banning maintenance services for Russian LNG tankers and icebreakers, it said.

The package further introduces new export and imports restrictions and bans, including a quota on ammonia to cap existing imports, the commission added.

“Today's package contains 120 additional listings, including 33 individuals and 83 entities, resulting in an asset freeze and the prohibition to make funds and economic resources available to them,” the EC said.

The EU adopted its 19th sanctions package against Moscow in October 2025, targeting 117 vessels that are allegedly a part of the Russia's shadow fleet used to circumvent the price caps set on Russian crude and oil products.

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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