Russian oil giants, insurers among firms targeted in EU’s expanding sanctions regime

The European Union is weighing new sanctions against Litasco, the trading arm of Russian oil giant Lukoil, in what would be the first time the company has faced such measures since the start of the war in Ukraine.

According to Bloomberg, which cites documents reviewed by the publication, Litasco may be included in the EU’s 17th sanctions package currently under consideration by the European Commission, as reported by Caliber.Az.

The proposed sanctions list also reportedly includes VSK, one of Russia’s top five insurance companies already sanctioned by the UK in 2023, and Surgutneftegas PJSC, the country’s third-largest crude oil exporter, which accounted for nearly 12% of Russia’s foreign oil sales last year.

A key focus of the EU’s proposed measures is Litasco’s Middle East division, headquartered in Dubai. The European Commission is targeting the unit over allegations that it supports the expansion of Russia’s so-called “shadow fleet” — a network of tankers used to transport Russian oil while evading sanctions and price caps.

In total, the 17th sanctions package could affect approximately 60 individuals and around 150 vessels, potentially increasing the total number of EU-sanctioned ships to over 300.

This follows the 16th sanctions package, adopted by the EU in February 2025, which took aim at core sectors of Russia’s economy — including energy, trade, transportation, infrastructure, and finance — and added 74 vessels suspected of aiding Russian oil exports and circumventing existing sanctions.

By Nazrin Sadigova