Brussels
The European Union is preparing a fresh package of sanctions aimed at further crippling Russia’s economy, targeting its banks, energy sector, and oil trade. Officials have confirmed that the 19th round of measures could be rolled out in coordination with the United States, signalling a more aggressive transatlantic approach to restrict Moscow’s revenues from the ongoing conflict in Ukraine.
Focus on financial and energy sectors
EU diplomats revealed that new restrictions are being discussed against Russian banks, crypto exchanges, and payment systems that facilitate international transactions. By tightening access to financial networks, the bloc aims to make it increasingly difficult for Russia to bypass existing sanctions.
The package also includes proposals to curb oil revenues, a major source of funding for Moscow. Measures under consideration involve blocking Russia’s so-called “shadow fleet” of tankers, limiting insurance and reinsurance services for ships transporting Russian oil, and imposing stricter controls on oil traders in third countries.
Joint action with Washington
A senior EU delegation is expected to travel to Washington this week for consultations with US officials. Both sides are seeking to align strategies, particularly on targeting shipping firms and intermediaries involved in circumventing the G7 oil price cap. The US has already been vocal about expanding restrictions to make it harder for Russia to sell oil through alternative routes.
According to reports, Washington is also considering fresh tariffs on countries that continue to import Russian oil. Coordinating with the EU would not only expand the reach of sanctions but also signal a united front against Moscow’s economic manoeuvres.
Wider restrictions under review
In addition to oil and banking, the sanctions are expected to extend to Russia’s defence supply chain. Export bans on dual-use goods, technology, and machinery that could support the military are part of the discussions. For the first time, the EU is also considering using its recently adopted “anti-circumvention tool” to prevent indirect exports to Russia through neighbouring states such as Kazakhstan.
Officials noted that secondary sanctions could be applied to foreign buyers of Russian oil, with China’s purchases closely monitored. However, this remains contentious, as several EU members are wary of straining trade ties with major economies.
Divisions within the EU
While most member states support tightening the screws on Moscow, countries like Hungary and Slovakia, which remain dependent on Russian energy, are expected to resist stronger measures. Negotiations are likely to be difficult, with the final package requiring consensus among all 27 members.
Despite these challenges, EU leaders argue that stepping up sanctions is necessary to reduce Russia’s ability to fund its war in Ukraine. The proposed measures would complement military aid and diplomatic efforts, ensuring that economic pressure remains a core element of Europe’s strategy.
Next steps
The European Commission is expected to formally present the 19th sanctions package in the coming days. Once introduced, the proposal will be debated by member states, with discussions likely to continue over the coming weeks. Coordination with Washington will play a key role in shaping the final outcome.
As the Ukraine conflict enters another winter, both the EU and US are under pressure to show that their sanctions have real teeth. The effectiveness of the new package will depend not only on the scope of restrictions but also on the unity of the transatlantic alliance.