EU Proposes 20th Sanctions Package Against Russia, Targeting Energy, Finance, and Trade

EU Unveils Extensive Sanctions Proposal

The European Union's executive body, the European Commission, officially proposed its 20th package of sanctions against the Russian Federation on February 6, 2026. European Commission President Ursula von der Leyen announced the new measures, which are designed to further diminish Russia's ability to fund its ongoing war against Ukraine by targeting key sectors of its economy: energy, financial services, and trade.

The proposal now moves to the Council of the EU for discussion and approval, which requires unanimous support from all 27 member states. This latest package aims to send a 'powerful signal' ahead of the grim fourth anniversary of the conflict.

Energy Sector Hit with Maritime Services Ban

A central component of the new sanctions focuses on Russia's lucrative energy sector. The EU is proposing a full maritime services ban for Russian crude oil, a measure intended to be coordinated with G7 partners. If approved, this ban would prohibit European companies from providing essential services such as insurance, shipping, and financing for the transport of Russian oil, regardless of its price. Oil and gas revenues currently constitute approximately one-third of Russia's federal budget, making energy exports a critical source of funding for its military actions.

Further restrictions in the energy domain include:

• The listing of 43 additional vessels as part of Russia's 'shadow fleet,' bringing the total number of sanctioned ships to 640.
• Bans on maintenance and other services for LNG tankers and icebreakers, aimed at hindering Russia's gas export projects. This builds upon the ban on LNG imports introduced in the 19th sanctions package.

Financial Services and Trade Restrictions Expanded

The proposed sanctions also extend to Russia's financial services and trade sectors. To curb Russia's banking system and its efforts to establish alternative payment channels, the EU plans to list an additional 20 Russian regional banks. Measures will also be introduced against cryptocurrencies, the companies that trade them, and platforms facilitating crypto transactions, aiming to close avenues for circumvention.

In terms of trade, the package introduces:

• New export bans on a range of goods, including rubber products, tractors, and cybersecurity-related equipment.
• Additional import restrictions on materials such as metals, chemicals, and critical minerals.
• A new quota on ammonia imports.
• The activation of an anti-circumvention tool for the first time, which will ban the export of CNC machine tools and radio equipment to countries deemed at high risk of re-exporting these items to Russia.

Objective to Undermine War Funding

The overarching objective of this 20th sanctions package is to intensify economic pressure on Moscow, thereby cutting off crucial revenue streams that finance its military aggression. The European Commission's proposal underscores the EU's continued commitment to leveraging economic measures in response to the conflict in Ukraine.