EU Approves 19th Sanctions Package Against Russia, Targeting Energy and Finance

The European Union concluded its nineteenth official European Council summit in Brussels on Thursday, October 23, 2025, bringing together the 27 heads of state and government of the bloc. Against a backdrop of persistent geopolitical tension surrounding Ukraine, the meeting saw the early participation of Ukrainian President Volodymyr Zelensky. The primary achievement of the summit was the unanimous endorsement of the nineteenth package of restrictive measures aimed at the Russian Federation, a milestone reached after Slovakia withdrew its previous objections.

This latest complex of punitive actions is designed to sever crucial avenues for financial maneuvering, specifically targeting schemes used for sanctions evasion, including those involving digital assets and the Russian MIR payment system. Crucially, the Council of the European Union formally published decisions introducing a phased prohibition on the import of Russian liquefied natural gas (LNG). For existing short-term contracts, this ban will take effect within six months. For long-term agreements, the prohibition is scheduled to commence on January 1, 2027, accelerating the timeline by a full year compared to the European Commission’s original proposals.

Furthermore, the package imposes outright bans on transactions with several major state-owned enterprises and defense conglomerates. These include Transneft, Gazprom Neft, Rostec, Almaz-Antey, Sovcomflot, Uralvagonzavod, Kamaz, and UAC, among other entities deemed critical to Russia’s military and economic infrastructure.

In the financial domain, the EU significantly tightened the screws on five Russian banking institutions: NKO “Istina” (JSC), LLC “Zemsky Bank,” “Absolut Bank” (PJSC), PJSC “MTS-Bank,” and JSC “Alfa-Bank.” Complementing these institutional measures, a total prohibition was instituted on the provision of cryptocurrency services to Russian citizens, residents, and companies, closing a significant loophole used to bypass traditional financial restrictions.

Efforts to combat sanctions circumvention were also dramatically ramped up. The EU added 117 vessels belonging to the so-called “shadow fleet” to its blacklists, bringing the total number of blocked ships to 558. Moreover, 45 organizations originating from third countries were targeted for facilitating the evasion of existing restrictions, a list that notably includes 12 entities based in China and Hong Kong.

The new measures extend beyond finance and energy, impacting travel and diplomacy. European businesses are now barred from offering tourism services within Russia or organizing travel packages to the Russian Federation. Additionally, a new mechanism will be implemented to restrict the movement of Russian diplomats across the territory of the European Union, limiting their ability to travel freely.

European Commission President Ursula von der Leyen confirmed that this package marks the first time the EU has directly targeted Russia’s gas sector, underscoring the bloc’s determination to maintain pressure until a just and lasting peace is secured for Ukraine. In related news concerning defense support, Sweden confirmed its potential to supply Ukraine with up to 150 Gripen fighter jets, with initial deliveries anticipated in 2026. Finally, leaders mandated the European Commission to develop concrete proposals regarding the utilization of frozen Russian assets to provide credit and financial support to Ukraine.