EU unveils 19th sanctions package targeting Russia’s energy, banks, crypto

The European Commission has introduced a sweeping new package of sanctions against Russia, coinciding with mounting pressure from US President Donald Trump to sever all energy ties with Moscow.

Unveiled on September 19 by Commission President Ursula von der Leyen, the proposed measures come as Russia intensifies its drone and missile attacks on Ukraine—strikes that recently hit the EU’s own delegation in the country—and as President Vladimir Putin continues to ignore calls for negotiations, Caliber.Az reports, citing foreign media.

This 19th sanctions package, if endorsed by EU member states, will expand punitive action to include banks, 118 vessels belonging to Russia’s so-called "shadow fleet," and, for the first time, cryptocurrency platforms allegedly used by Moscow to launder transactions within the global financial system.

Negotiations among EU ambassadors are already underway, driven by a renewed sense of urgency after recent violations of Polish and Romanian airspace.

"Over the past month, Russia has shown the full extent of its contempt for diplomacy and international law," von der Leyen stated in a video address.

"We will continue to use all the tools at our disposal to bring this brutal war to an end."

A central element of the plan is an accelerated phase-out of EU imports of Russian fossil fuels, which in 2024 accounted for approximately €21.9 billion. While the EU had already set an ambitious timeline to eliminate all Russian energy purchases by the end of 2027, recent events have prompted Brussels to propose a faster timeline.

In particular, the Commission now seeks to halt all imports of Russian liquefied natural gas (LNG) by 1 January 2027—one year ahead of schedule. The package also includes measures targeting refineries, oil traders, and petrochemical companies that continue to purchase Russian oil in violation of Western sanctions.

"Russia's war economy is sustained by revenues from fossil fuels. We want to cut these revenues," von der Leyen said. "It is time to turn off the tap."

This shift in policy comes as Donald Trump, newly re-elected and currently on a state visit to the United Kingdom, intensifies his calls for Europe to immediately end all energy imports from Russia. Trump has signalled that this move is a precondition for his administration to impose broader "major sanctions" against Moscow—a step he has so far declined to take.

"The purchase of Russian Oil, by some, has been shocking! It greatly weakens your negotiating position, and bargaining power, over Russia," Trump declared in what he described as an open letter to "all NATO nations and the world."

"Anyway, I am ready to 'go' when you are. Just say when?"

Days later, during a high-profile appearance in London, Trump reiterated his position:

"I'm willing to do other things, but not when the people that I'm fighting for are buying oil from Russia."

Von der Leyen’s proposal does not directly address the longstanding legal exemption allowing Hungary and Slovakia to continue importing Russian crude through the Druzhba pipeline. However, the plan would impose a "full transaction ban" on Rosneft and Gazprom Neft, two of Russia's primary oil suppliers—an action that could significantly complicate payment mechanisms even for countries still permitted to receive Russian oil under existing exemptions.

The Druzhba exemption has remained unchanged since mid-2022. Notably, since Trump’s re-election, both Hungary and Slovakia have pivoted toward aligning their foreign policy more closely with the White House. Nonetheless, the new American pressure has exposed their entrenched reliance on Russian energy.

It remains uncertain how either country will respond to the Commission’s latest proposal. Both have a track record of leveraging their veto powers within the EU to negotiate favorable concessions.

Beyond energy and banking, the sanctions package also proposes further restrictions on the export of dual-use goods, as well as measures targeting non-Russian entities accused of helping Moscow evade existing sanctions—some of which are located in China, which Brussels has labelled the "key enabler" of Russia’s war effort.

Contrary to expectations in Washington, the 19th sanctions package stops short of including any form of the steep 50% to 100% tariffs on Chinese goods that Trump demanded in his open letter to NATO allies.

Nonetheless, von der Leyen underscored the sanctions’ cumulative effect on the Russian economy.

"Our economic analysis is clear: our sanctions are severely affecting the Russian economy," she said. "Russia's overheated economy is coming to its limit."

By Vafa Guliyeva