Key facts
- The EU passed its 21st sanctions package against Russia on July 23, targeting crypto firms, banks, and oil trading platforms.
- The package includes 218 new sanctioned entities, the largest number since 2022.
- Ninety-four Russian banks are now fully blocked from trade with Europe, and Moscow's stock exchange was added to the sanctions list.
- The EU is targeting Russia's A7 crypto network and 14 third-country crypto platforms aiding sanctions evasion.
- New measures allow for the confiscation of assets from Russian shadow fleet vessels.
- An exemption was made for transporting LNG to third countries, impacting previous sanctions on Greek shipping.
The European Union has enacted its 21st package of sanctions against Russia, demonstrating increased creativity in restricting the nation's war efforts. The measures, passed on July 23, target a wide array of entities including banks, drone manufacturers, ship-servicing crews, athletes, oil refineries, and cryptocurrency platforms.
The sanctions list, comprising 218 new entities, is the most extensive since 2022. While some proposed additions, such as Patriarch Kirill and Russian propagandist Xenia Fedorova, did not make the final cut, the breadth of the list signifies an expanding scope of the EU's sanctions regime.
Financial measures are particularly noteworthy, with 94 Russian banks now fully blocked from trade with Europe, representing approximately half of the country's banking sector by number, and a significantly higher percentage by revenue and assets. Moscow's stock exchange has also been directly sanctioned due to its central role in trading investments into Russian military corporations and government bonds.
The EU's focus on cryptocurrency has intensified, mirroring the UK's lead by targeting Russia's A7 crypto network, which facilitates sanctions evasion. This network is majority-owned by oligarch Ilan Shor. The crackdown extends to 14 third-country crypto platforms across various continents identified as aiding Russia's circumvention efforts. The EU has also introduced the possibility of imposing wholesale country bans if multiple crypto platforms within a nation are found to undermine sanctions.
In an innovative move to combat Russia's shadow fleet, the EU has introduced a provision allowing member states to confiscate assets from boarded shadow fleet vessels, with proceeds going to state coffers. Additionally, 41 shadow fleet vessels have been added to the sanctions database, alongside a ban on third-country ships servicing the fleet and financial transaction bans on Russian ports.
However, legal loopholes persist, particularly concerning Liquefied Natural Gas (LNG). An exemption was agreed upon to allow companies to continue transporting LNG to third countries, a concession made to Greece to secure agreement on the package. This exemption effectively weakens aspects of a previous sanctions package. The EU will revisit the need for a full prohibition on LNG tanker sales in three months.