May, 2025 – Sanctions against Russia: EU introduces 17th package of sanctions; and UK implements further wide reaching measures
On 20th May, 2025, the European Union (EU) issued its 17th package of sanctions against Russia. The latest package includes measures aimed at curbing Russia’s energy revenues and restricting access to key military technology:
Further targets on Russia’s ‘shadow fleet’
The EU adopted its largest ever package targeting Russia’s so-called ‘shadow fleet’, doubling the number of ships subject to port access bans and restrictions on maritime related services. This includes:
- Designating a further 189 ships, bringing the total to 342. These ships have been targeted for transporting Russian oil while practising irregular and high-risk shipping practices, or supporting Russia’s energy sector. This marks a shift from previous designations, which focussed on breaches of the oil price cap.
- Among those designated are entities from the United Arab Emirates (including Eiger Shipping DMCC, the Dubai based transport arm of Lukoil; and Moonlight Shipmanagement, which manages tankers), Turkey and Hong Kong, and Insurance Joint Stock Company VSK, said to be a key insurer of the Russian oil shipping industry.
The EU claims that since the introduction of the oil price cap and shadow fleet sanctions, relevant Russian revenues have decreased by EUR 38 billion.
Energy
To further restrict Russia’s revenue streams, the EU has designated:
- Surgutneftegaz, a major Russian oil company said to provide substantial revenues to the Russian government thereby fuelling the war effort; and
- Joint Stock Company Volga Shipping, said to be an important Russian oil shipping company.
The package also extends the oil price cap exemption which allows the transport, by ship, of crude oil originating in the Sakhalin-2 Project in Russia, to Japan.
Grain from occupied territories
The EU also designated State Unitary Enterprise “State Grain Operator”, an entity established in the illegally occupied Zaporizhzhia region of Ukraine, for facilitating and exploiting local grain production and exports out of the occupied Sea of Azov port of Berdiasnk.
While Western governments have historically shown reluctance to sanction such activities due to concerns over global food security, recent measures by the EU and US indicate a shift. The EU has now sanctioned four bulk carriers in relation to the transport of Ukrainian grain; and the US sanctioned a Russian flagged bulk carrier in April, 2025, for carrying two shipments of Ukrainian grain from Crimea to Yemen.
Military-industrial sector
The 17th package also includes:
- Sanctions on over 45 Russian companies and individuals providing military supplies to the Russian army, and entities from China, Belarus and Israel for providing critical components to the Russian military;
- 31 new entities have been added to the list of those subject to tighter export restrictions concerning dual use goods and technologies, including some in third countries and which have been involved in the circumvention of export restrictions, including on Unmanned Aerial Vehicles (UAVs) or computer numerical control machine tools; and
- Additional restrictions on exports of goods contributing to Russia’s military and technological advancement, including chemical precursors to energetic materials and spare parts for machine tools.
Further information can be found here:
Russia’s war of aggression against Ukraine: EU agrees 17th package of sanctions - Consilium
UK sanctions
The UK has also expanded its sanctions against Russia:
- On 9th May, 2025, the UK sanctioned 110 ships linked to the shadow fleet, reportedly responsible for transporting over $24 billion worth of cargo since the start of 2024.
- On 20th May, 2025, the UK imposed sanctions on 100 additional targets across Russia’s military, energy, and financial sectors, as well as individuals involved in disinformation campaigns.
The latest measures include the designation of:
- 18 more shadow fleet ships and associated enablers;
- John Michael Ormerod, a British national accused of procuring ships for Lukoil; and
- Two Russian captains of shadow fleet tankers.
The UK has also indicated that it is working with partners to tighten the oil price cap, currently set at $60 per barrel, with a view to lowering it closer to the cost of production.
As and when such measures are introduced, we will provide further updates.
Further information can be found here:
UK announces major sanctions in support of Ukraine - GOV.UK
If Members have any questions in relation to the above issues they are invited to contact the Club for further information.
Authored by Charlotte Murphy and Kieron Moore