EU proposes new sanctions package targeting Russian soldiers, banks and oil revenues

The European Commission has proposed a fresh sanctions package against Russia that would, for the first time, bar anyone who has served in the Russian armed forces since the start of the war from entering the European Union. The measures also target banks, crypto firms, shadow-fleet vessels and Kremlin oil revenues. The proposal was announced in Brussels on Tuesday and now needs unanimous approval from the EU's 27 member states.

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European Commission president Ursula von der Leyen said the bloc was seeking to make Europe "off limit" for anyone who had taken part in the invasion of Ukraine. She said the package was the 21st set of measures since Russia's full-scale invasion in February 2022. The commission also wants to keep the price cap on Russian oil at $44 until January 2027, a move intended to limit gains from higher crude prices.

The proposed package would add 30 shadow-fleet vessels to the blacklist, on top of 632 already under restrictions. It would also extend sanctions to cryptocurrency firms that have helped Russia cope with being shut out of western capital markets. In addition, Brussels wants to place sanctions on 20 banks, crypto firms and oil traders in third countries that it says are helping Russia evade existing restrictions.

The measures underline how the EU is still trying to tighten pressure on Moscow more than four years into the war. Sanctions have become one of the bloc's main tools for trying to weaken the economic foundations of Russia's war effort. The latest proposal also reflects concern in Brussels that Russia continues to use intermediaries, shipping networks and financial channels to keep trade and revenue flows moving despite earlier rounds of restrictions.

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The focus on the shadow fleet is significant because those vessels have been used to help Russia bypass western sanctions on oil exports. The oil price cap is also central to the EU's approach, because it is designed to limit the Kremlin's income while keeping global energy markets supplied. By extending the cap until January 2027, the commission is signalling that it wants to keep that pressure in place for the longer term.

The proposal follows earlier calls from Estonia for a visa ban on Russian ex-combatants, which its foreign minister said in January was needed for Europe's security. The current package is still only a proposal and could be amended before any final decision. What remains unclear is whether all member states will agree to the new measures, and how quickly they could be adopted if they do.

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