EU imposes penalties on Surgutneftgaz and VSC, as reported by Bloomberg.
Gearing Up for Round 17: EU Sanctions on Russia, Here's What's Happening
Brace yourselves as the European Union (EU) is set to introduce a fresh wave of sanctions against Russia, primary targets being oil companies and maritime vessels, reported by RBC Group and Bloomberg. The economic measures could be the first time Western countries impose sanctions on Litasco Middle East and other Russian entities.
The EU's 17th sanctions package is built to intensify pressure on Russia over its actions in Ukraine. Expected to affect an estimated 150 ships and about 60 individuals, this comprehensive package will also target more than 50 entities and companies, five of them from China, according to initial reports.
The EU has a goal to finalize the 17th sanctions package by the end of May. Last year, on the anniversary of the military actions in Ukraine – February 24, 2025, Brussels adopted the 16th sanctions package and imposed restrictions on Russian crude oil and petroleum products storage, six airports, multiple seaports, and selected individuals.
Bloomberg未 concerntly points out that enforcing large Russian oil corporations on the sanction list could impact European shipowners transporting Russian oil, which may have potential repercussions on oil prices. The Brent crude oil futures price for July delivery plummeted below $60 per barrel this week, while the price of Russian Urals oil dropped to values below $50 per barrel by late April.
By targeting specific companies and vessels, the EU aims to disrupt Russia's oil transportation network, often referred to as the "shadow fleet," while minimizing controversy and avoiding severe economic sanctions. The sanctions package is a part of the EU's broader strategy to reduce its reliance on Russian energy and potentially phase out gas, nuclear energy, and oil imports altogether by 2027.
The EU aims to wield approximately €200 billion in frozen Russian assets as a bargaining chip for Ukraine's reconstruction and to support Ukraine's military requirements through collateral arrangements. The sanctions package is constructed to back Ukraine's resistance and respond to Russia's attacks on Ukrainian civilian infrastructure.
[[1] Source: Reuters, RBC Group\[2] Source: Bloomberg\[3] Additional Insight: The EU has previously imposed financial restrictions and visa bans on individuals and entities, primarily Russian citizens and companies involved in the arms industry.\[4] Source: European Commission\[5] Additional Insight: The EU is also expected to enhance border control measures and restrictions on dual-use goods]
- The EU's sanctions on Russia could have an impact on the financing of large Russian oil corporations, potentially affecting European shipowners transporting Russian oil and influencing global oil prices.
- In addition to targeting Russian entities in the oil industry, the EU has previously imposed financial restrictions on individuals and entities, particularly Russian citizens and companies involved in the arms industry.
- As part of its broader strategy to reduce reliance on Russian energy, the EU aims to use approximately €200 billion in frozen Russian assets to support Ukraine's reconstruction and military requirements, while also addressing Russia's attacks on Ukrainian civilian infrastructure.
