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Russian crypto, banks, and oil trade hit in EU’s proposed 19th sanctions package

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European Commission President Ursula von der Leyen has presented the EU’s proposed 19th package of sanctions against Russia, focusing on energy, finance, and military-linked technology. The measures must still be adopted unanimously by EU member states.

This comes amid Russia’s ongoing full-scale invasion of Ukraine. Since taking office in January, US President Donald Trump has not approved any new sanctions against Russia, while urging the EU to adopt tougher measures against both Russia and China.

Energy: “It is time to turn off the tap”

According to the European Commission, von der Leyen announced a full ban on Russian liquefied natural gas imports.

“Russia’s war economy is sustained by revenues from fossil fuels,” she said.

Rosneft and Gazpromneft would face full transaction bans, and 118 new vessels from Russia’s shadow fleet would be blacklisted.

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The package also includes penalties on oil buyers in third countries, including China.

“We are now going after those who fuel Russia’s war by purchasing oil in breach of the sanctions,” she stated.

Finance: crypto and banks under new restrictions

The EU would impose a transaction ban on more Russian banks and banks in third countries. For the first time, crypto platforms would be sanctioned. Transactions in cryptocurrencies and with entities in special economic zones would be restricted.

Military tech and indoctrination networks targeted

The proposal includes new export bans on items used on the battlefield, and sanctions on 45 companies supporting Russia’s military-industrial complex. Individuals involved in the indoctrination of abducted Ukrainian children would also be sanctioned.

Economy under pressure

“Our economic analysis is clear – our sanctions are severely affecting Russia’s economy,” von der Leyen said. She pointed to a 17% interest rate and high inflation. “Among the first Russian requests is, sanctions relief.”

Using frozen assets to fund Ukraine

Von der Leyen said the EU is preparing a plan to use cash tied to immobilized Russian assets to fund a Reparations Loan for Ukraine.

“Ukraine will only pay back the loan once Russia pays reparations,” she said.

Coordination and call to action

The sanctions will align with G7 measures under Canada’s presidency.

“We want Russia to leave the battlefield and come to the negotiating table,” von der Leyen said. “This is the way to give peace a real chance.”

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War in Ukraine could end within months if Europe targets Russian oil buyers, US treasury chief says

Russian-oil

US Treasury Secretary Scott Bessent has linked the potential end of Russia’s war in Ukraine to European action against countries purchasing Russian oil.

Russia’s oil revenues remain central to financing its military operations, with energy sector profits accounting for approximately 77.7% of the country’s federal budget in 2025. Moscow has maintained these crucial revenue streams through an expanding “shadow fleet” of grey-market tankers that evade international sanctions by operating with disabled transponders, inadequate insurance, and concealed identities. These vessels primarily transport Russian crude to China, India, and Global South countries, with about 70% of the fleet passing through the Baltic Sea.

Speaking in a joint interview with Reuters and Bloomberg on 15 September, Bessent said the conflict could conclude within 60 to 90 days if European nations imposed substantial secondary tariffs on Russian oil buyers because it would eliminate Moscow’s primary revenue source.

Bessent also stated that the Trump administration will not impose additional tariffs on Chinese goods to halt China’s Russian oil purchases unless European countries implement steep duties on China and India.

“We expect the Europeans to do their share now, and we are not moving forward without the Europeans,” he said.

US Treasury Secretary Scott Bessent. Photo: @cnbc

Bessent’s comments follow President Donald Trump’s decision to impose an additional 25% tariff on Indian imports.

During talks with Chinese officials in Madrid focusing on trade and TikTok, Bessent said he informed them that the US had already imposed tariffs on Indian goods and that Trump has been urging European countries to impose tariffs of 50% to 100% on China and India. 

The treasury secretary criticized European countries for continuing to purchase Russian oil directly or buying petroleum products refined in India from discounted Russian crude. 

The treasury chief outlined next steps: stronger sanctions on Russian oil giants Rosneft and Lukoil, plus expanded use of the $300 billion in frozen Russian sovereign assets. Small seizures could start immediately, or the funds could serve as collateral for Ukrainian loans.

Meanwhile, Ukraine took matters into its own hands. Drone strikes in August eliminated four major Russian refineries, wiping out one-seventh of the country’s refining capacity. Gasoline prices surged 40-50% since January. Ukrainian forces also severed the Druzba pipeline, Russia’s main oil export route to Europe, cutting supplies to Hungary and Slovakia.

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Ukrainian drones shutdown of Russia’s key Baltic oil terminal for first time

Primorsk oil port in Leningrad Oblast, Russia. Illustrative photo via Astra

Ukrainian Security Service drones struck Russia’s northwestern port of Primorsk on 12 September, hitting two tankers and forcing the suspension of operations at the country’s largest western oil export terminal for the first time, Reuters reported citing industry sources.

Two oil tankers, Kusto and Cai Yun, were hit by the attack, according to the industry sources. Kusto is an Aframax tanker, with capacity to carry about 700,000 barrels, and is owned and managed by Solstice Corp, according to LSEG. Cai Yun is an Aframax owned and managed by Acceronix Ltd. Both vessels are registered in the Seychelles and belong to Russia’s shadow fleet, the news agency reported.

The port has a capacity to load about 1 million barrels per day of crude oil and handles approximately 300,000 barrels per day of diesel, making it Russia’s key export hub in the Baltic Sea.

According to sources, as a result of the successful attack by SBU drones, fires broke out on one of the vessels in the port and at the pumping station, and oil shipments were suspended. Estimated daily losses to the Russian budget from the suspension of exports could be up to $41 million.

Russia’s Leningrad Oblast Governor Aleksandr Drozdenko reported that one of the vessels in the oil port of Primorsk on the Baltic Sea caught fire following a drone attack. Drozdenko later reported that the attack caused a fire to break out at a pumping station in Primorsk. He said it was extinguished without casualties. The governor stated that more than 30 drones were destroyed over the region.

The attack prompted temporary suspension of operations at St. Petersburg’s Pulkovo Airport due to the drone threat. The drone threat in the region forced St. Petersburg’s Pulkovo Airport to shut down — an increasingly common procedure amid intensifying Ukrainian attacks, according to reports.

Oil prices rose by nearly 2% following the attack as markets reacted to the suspension of loadings at the strategic facility. The strike represents an escalation in Ukraine’s campaign against Russian energy infrastructure, with Kiev intensifying drone attacks on oil facilities to cut Moscow’s main revenue source.

Russia has already faced limitations on oil exports after drone attacks on other facilities, including the nearby Ust-Luga port, which has been operating at half capacity since an August strike. The country revised its September crude export plan from western ports to 2.1 million barrels per day, an 11% increase from the initial schedule.

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