Today, 23 July, the European Union agreed on the measures included in the 21st sanctions package, aimed at reducing Russia’s state budget revenues and thereby limiting its ability to continue its aggression against Ukraine. At Estonia’s initiative, the package addresses restricting access to the Schengen Area for Russian combatants who have participated in the war against Ukraine. Among other measures, the package freezes the Russian oil price cap at its current level for the coming year.
“Over the past few months, Ukraine’s deep strikes against Russia have shifted the balance against the aggressor. Russia is facing increasing military and economic difficulties, making this the right moment to intensify pressure so that it is finally forced to end its aggression against Ukraine,” said Foreign Minister Tsahkna.
Under the EU’s 21st sanctions package, it was agreed that a visa ban should be introduced for Russian combatants who have taken part in Russia’s war of aggression against Ukraine. At Estonia’s initiative, the measure aims to pre-empt the security risks that individuals with combat experience and hostile attitudes towards Europe pose to the Schengen Area. Russia currently has approximately 650,000 active-duty military personnel.
“Estonia has been the leading advocate for restricting the entry of Russian combatants into the Schengen Area. In addition to the agreement reached today, we expect the European Commission to present proposals as early as this autumn on how to swiftly implement these bans and keep Russian fighters who have participated in the war out of Europe,” Tsahkna said.
“The package agreed today includes measures that will reduce Russia’s state budget revenues and, consequently, its ability to continue the war. At the same time, Estonia, together with several other Member States, sought even stronger measures, particularly to further restrict Russia’s energy exports,” Tsahkna said, adding that it is regrettable that EU companies continue transporting Russian LNG.
The price cap on Russian crude oil will remain frozen for the next year at its current level of USD 44.1 per barrel. “Keeping the oil price cap frozen at the current level is extremely important to keep Russia from earning additional budget revenues as a result of higher global oil prices,” the Foreign Minister said.
The sanctions package includes economic and individual sanctions in the financial, energy, and trade sectors. Among other measures, restrictions on Russia’s banking sector and shadow fleet are strengthened, and Member States will be required to notify authorities when LNG tankers are sold. It will also become possible to sanction vessels that provide services, such as bunkering, to ships already listed as part of Russia’s shadow fleet.
In addition, measures are strengthened to prevent Russia from using crypto-asset services to circumvent sanctions. While the previous package prohibited the use of Russian crypto platforms, the new package introduces the possibility of sanctioning crypto-asset service providers in third countries that facilitate the evasion of sanctions against Russia.
In the financial and energy sectors, the 21st package adds additional credit and financial institutions, as well as traders facilitating the circumvention of oil sanctions, to the list of entities subject to transaction bans. A further 41 vessels, most of them shadow fleet tankers, are also now on the sanctions list. Several Russian ports and airports were also added to the transaction ban list.
The package also significantly expands individual sanctions. More than 200 individuals and entities were added to the sanctions list, including Russian banks, defence industry companies and associated persons, Russian businessmen and executives of major companies, propagandists and supporters of the war, companies in the metallurgy sector (including the gold industry), Russian oil companies, and companies in third countries that facilitate Russian oil exports. Sanctions were also expanded for Belarus.
The agreed sanctions will be published in the Official Journal of the European Union.
More information on sanctions is available on the website of the Estonian Ministry of Foreign Affairs.
Council of the European Union factsheet
Related news: European Union adopts its largest-ever package of cyber sanctions against Russia.
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