In the 20th sanctions package, the EU introduced new restrictions against the Russian oil industry and LNG market, as well as banning the import of platinum, copper, nickel, aluminum products, molybdenum, and cobalt, as outlined in a regulation published on April 23 by the EU Council.
The announced ban on providing services for the transportation of Russian oil is absent from the new package. However, the EU Council noted that the package includes "a basis for a future ban," which will be implemented in coordination with the G7. According to the regulation, it is deemed appropriate to amend the price cap for Russian oil and petroleum products. The intention is for new restrictions to be introduced upon the proposal of the EU's foreign affairs representative. "This will enable alliance members to promptly block maritime logistics for Russian oil should the parameters of the price cap change," the document states.
The EU had considered a ban on servicing maritime transport for Russian oil as an alternative to the price cap mechanism, analysts at Kpler noted.
Currently, if the raw material cost does not exceed the set threshold, companies from EU and G7 countries can participate in transporting oil from Russia. Since February 1, the EU and the UK have lowered the limit to $44.1 per barrel from the previously effective $47.6 per barrel. The price cap is to be reviewed every six months to maintain it 15% below market average.
According to S&P Global, the pursuit of full support from the G7 may delay the decision on banning the provision of services for the transport of Russian oil for several months. Representatives from major shipping economies—Malta, Greece, Hungary, and Slovakia—expressed opposition, as noted by analysts.
According to data from S&P Global Commodities at Sea and the Maritime Intelligence Risk Suite, G7-associated tankers accounted for 20.3% of Russian oil exports, amounting to 3.4 million barrels per day in March. This is down from 29.2% in February and represents the lowest level in ten months. G7-associated tankers are reducing their transport of Russian raw materials due to rising prices following the onset of the conflict in the Middle East.
- Under EU sanctions, “Bashneft” (major shareholder—“Rosneft”), “Slavneft” (owned by “Rosneft” and “Gazprom Neft”), the ports of Primorsk and Tuapse, and 12 refineries in Russia, including LUKOIL, have been sanctioned.
- Additionally, 46 vessels have been banned from entering ports and maritime services, bringing the total to 632 tankers on the blacklist.
- The EU also imposed restrictions on the sale of tankers from EU countries to prevent their ultimate use by Russia, according to the document. European countries are now required to provide documentation on the sale of tankers “not for Russia.”
- Furthermore, the ports of Murmansk and Karimun in Indonesia have also come under European restrictions.
As reported by Reuters, by 2025, Karimun became a key transshipment point for Russian oil products, which were then exported to Malaysia, Singapore, and China. In December, the volume of shipments was estimated at 300,000 tons.
Open Oil Market CEO Sergey Tereshkin stated that tankers registered outside the EU and major OECD countries will likely play an even larger role in transporting raw materials from Russia. While the reduction of re-export through the Karimun terminal poses risks, it is likely that another similar location will be found, he added. Overall, he mentioned that the primary impact of the current sanctions package will be an increase in logistics costs. He also noted that, unlike the US, the EU lacks a mechanism for monitoring previously imposed restrictions.
Regarding LNG, the EU aims to introduce a ban on providing Russian companies with LNG terminal services starting January 1, 2027. The European Commission believes this ban provides an automatic basis for LNG terminal operators in the EU to terminate long-term contracts with Russian companies. Verba Legal advisor Marat Samarsky indicated that overall foreign and security policy supersedes other areas of law. "We have seen this in older cases and more recent ones, where courts justified the emergency introduction of sanctions without verifying the grounds for some urgency," he commented.
LNG terminal services include unloading, storage, dispatch, mooring, regasification, liquefaction, loading into tank trucks, bunkering LNG, including temporary storage, and so on. The Yamal LNG plant (50.1% owned by NOVATEK, 20% by TotalEnergies) has a 20-year agreement with Belgian Fluxys LNG to utilize a tank for LNG transshipment at the Zeebrugge terminal. Starting in April 2025, a ban on re-exporting Russian LNG to third countries will come into effect at EU ports, after which Russia increased supplies to the European market.
The new sanctions also impose a ban on providing services—technical, financial, or brokerage—to Russian LNG tankers and icebreakers starting April 25, 2026.
As reported, a ban on LNG supply to the EU under long-term contracts will commence from January 1 and for short-term contracts from April 25, 2026. Due to the conflict in the Middle East, there have been isolated calls from European businesses to reconsider this ban. For instance, Claudio Descalzi, CEO of the Italian group Eni, mentioned that it is still unclear how the bloc could compensate for the loss of approximately 20 billion cubic meters of Russian LNG. However, the European Commission maintains its previous intentions. Recently, EU Energy Commissioner Dan Jørgensen stated that the EU would not abandon its plans to cease purchasing any Russian energy, as that would be "a tremendous mistake."
Analysts did not expect significant impact from the new metal supply restrictions on Russia (see “Ъ” from February 9). For instance, “Norilsk Nickel” reported in its 2024 financial statements that it has redistributed a significant portion of copper, nickel, and precious metal sales volumes from Europe predominantly to Asian and Russian markets.
Source: Kommersant
