The European Union has adopted a new, 14th package of sanctions against Russia, aimed at further restricting the country’s ability to finance its war in Ukraine. The key elements of the sanctions include:
Targeting Russia’s LNG exports: The sanctions prohibit the trans-shipment of Russian LNG off EU ports and allow Sweden and Finland to cancel some LNG contracts. While the EU stops short of a full ban on LNG imports, these measures are intended to reduce Russia’s revenues from gas exports.
Expanding investment and service restrictions: The sanctions prohibit new investments and services to complete LNG projects under construction in Russia.
Closing loopholes: The new package aims to limit the circumvention of sanctions by creating more responsibility and penalties at the member state level for those found flouting the regulations.
Adding entities and individuals to the sanctions list: The package adds 116 entities and individuals to the sanctions list, bringing the total to more than 2,200.
Targeting Russian cyber activities: The EU also announced sanctions against six individuals involved in “malicious cyber activities” against EU countries and Ukraine, with four of them directly linked to Russian intelligence and security services.
Restricting the use of Russia’s SPFS payment system: The sanctions prohibit EU banks outside Russia from using Moscow’s SPFS system, the Russian equivalent to the global payments system SWIFT, which was banned for Russian banks in 2022.
The sanctions will take effect after a nine-month transition period, allowing for a gradual implementation. The EU’s goal is to further limit Russia’s ability to finance its military operations in Ukraine and put pressure on the Russian economy.