On May 20, 2025, the European Union (EU) adopted its 17th sanctions package against Russia, intensifying efforts to curtail Moscow's ability to finance its ongoing war in Ukraine. This latest round of sanctions targets critical sectors of the Russian economy, including energy, trade, transportation, infrastructure, and financial services, while also addressing the issue of sanctions circumvention and Russian disinformation campaigns.
Key Measures in the 17th Sanctions Package:
1. Crackdown on the Shadow Fleet
A significant focus of the new sanctions is Russia's so-called "shadow fleet"—a network of vessels used to circumvent existing sanctions and transport oil covertly. 189 vessels originating from third countries were targeted under 17thsanctions package, bringing the total of designated vessels to 342. Those vessels are part of Russia’s ‘shadow fleet’, and responsible for transporting Russian oil while practicing irregular and high-risk shipping practices, or supporting Russia’s energy sector. Restrictive measures on the shadow fleet are intended to dismantle its operational capacity, thereby reducing the oil revenues that support Russia's war economy.
2. Expansion of Sanctioned Entities and Individuals
The EU imposes individual sanctions (assets freeze and prohibition to make funds available) targeting the shadow fleet ecosystem, namely on actors enabling the operation of the shadow fleet. These measures cover shipping companies responsible for the transportation of crude oil and oil products by the sea and engaging in dangerous practices at sea while transporting Russian oil, including entities from the United Arab Emirates, Türkiye and Hong Kong. The list also includes one important insurer of the Russian oil shipping industry.
With addition of 75 new listings (17 persons and 58 entities) EU restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine now apply to over 2400 individuals and entities. Those designated are subject to an asset freeze and EU citizens and companies are forbidden from making funds available to them. Natural persons are additionally subject to a travel ban, which prevents them from entering into or transiting through the territories of EU member states.
3. Restrictions on Energy
In order to further curb Russia’s revenue sources, the EU is also imposing restrictive measures on Surgutneftegaz, a major Russian oil company which provides substantial revenues to the Russian government, directly fuelling its war effort. An important Russian oil shipping company is also listed.
4. Military and Industrial sector
The EU is imposing sanctions on more than 45 Russian companies and individuals providing the Russian army with drones, weapons, ammunition, military equipment, critical components and logistical support. Making full use of the reinforced legal framework adopted in the 16th package, the EU also extend the targets to industrial enablers, such as Russian and Chinese entities supplying machine tools to the Russian military and industrial sector.
The EU also continues to address support from third countries by adding three Chinese entities – including state-owned – a Belarusian and an Israeli one providing critical components to the Russian military, including for drones production.
The Council also added 31 new entities to the list of those subject to tighter export restrictions concerning dual use goods and technologies, due to their support to Russia’s military and industrial complex in its war of aggression against Ukraine. Some of these entities are located in third countries (Serbia, the United Arab Emirates, Türkiye, Vietnam and Uzbekistan) and have been involved in the circumvention of export restrictions, including on Unmanned Aerial Vehicles (UAVs) or computer numerical control machine tools.
The EU also introduced further restrictions on exports of goods which contribute to Russia’s military and technological enhancement, the development of its defence and security sector the development or the production of its military systems, including chemical precursors to energetic materials and spare parts for machine tools.
4. Financial Sector Sanctions
The EU has expanded its financial sanctions by banning EU banks outside Russia from using Moscow's financial messaging system, SPFS, which serves as Russia's alternative to the global SWIFT system. This move aims to further isolate Russia's financial sector and prevent the circumvention of existing sanctions.
International Reactions and Challenges
The adoption of the 17th sanctions package comes amid concerns about the unity of Western allies in maintaining pressure on Russia. U.S. President Donald Trump's recent decision not to impose new sanctions following a call with President Putin has raised questions about the consistency of the U.S. stance. European leaders fear that such moves could fragment the collective resolve, especially with countries like Hungary threatening to block future sanctions. Ukraine has been urging the EU to take a more aggressive and independent approach, proposing measures such as asset seizure and secondary sanctions targeting foreign buyers of Russian oil.
China has expressed strong opposition to the EU's sanctions, particularly those targeting Chinese companies allegedly supporting Russia. The Chinese Foreign Ministry criticized the sanctions as "unreasonable" and accused the EU of applying "double standards," highlighting ongoing trade between Russia and various countries, including EU members and the United States.
The EU's 17th sanctions package represents a continued effort to pressure Russia economically and limit its capacity to sustain its military operations in Ukraine. However, the effectiveness of these measures depends on the unity and cooperation of international partners. As geopolitical dynamics evolve, the EU faces the challenge of maintaining a cohesive strategy while addressing the concerns of member states and navigating complex international relationships.
The situation remains fluid, and further developments are expected as the EU and its allies assess the impact of the sanctions and consider additional measures to support Ukraine and uphold international law.
For more details, please refer the European Commission.