Brussels, October 23, 2025 – The European Union shows no signs of slowing its pressure on the Kremlin. Today, during the latest session of the EU Council, member states unanimously approved the 19th sanctions package against Russia – the most ambitious to date, striking directly at the core arteries of Russia’s “war economy”: the cryptocurrency sector and liquefied natural gas (LNG) imports. This move, announced by European Commission President Ursula von der Leyen and EU High Representative for Foreign Affairs and Security Policy Kaja Kallas, is a response to Russia’s ongoing aggression against Ukraine and Moscow’s attempts to circumvent previous restrictions via a “shadow fleet” of tankers and intermediaries in third countries.
“We are maintaining high pressure on the aggressor. For the first time, we are targeting Russia’s gas sector – the heart of its war economy. We will not back down until Ukrainians achieve a just and lasting peace,” von der Leyen stated in her X (formerly Twitter) message, emphasizing that this package aligns with new U.S. sanctions against Russian oil giants such as Rosneft and Lukoil. Developed under Denmark’s EU presidency, this sanctions package includes over 45 new entities, 117 tankers, and a series of innovative restrictions aimed at paralyzing the Kremlin’s financial and logistical channels. Let’s examine in detail what this historic step entails.
One of the most resonant innovations is the complete ban on providing cryptocurrency services to Russian citizens, residents, and companies. This covers all transactions, exchanges, storage, and trading of crypto assets within the EU. Previously, crypto served as a “gray zone” for bypassing banking sanctions: according to EU intelligence, Russians used it to finance imports of dual-use goods, including components for drones and missiles. Now, any interaction with Russian entities in this sector is prohibited, and European crypto exchanges like Binance or Kraken are required to block accounts from the RF.
“This ban closes the Kremlin’s last digital valve, which it tried to exploit to evade our restrictions,” comments Atlantic Council energy security expert Thomas Cokering. Analysts estimate this could deprive Russia of access to hundreds of millions of dollars annually laundered through decentralized finance (DeFi). Additionally, the package imposes sanctions on one specific crypto exchange in a third country – likely in the UAE or Hong Kong – which served as a hub for Russian traders. This step not only strengthens Moscow’s financial isolation but also signals to the global crypto sector: the EU will not tolerate “neutrality” in the war against Ukraine.
The heaviest blow falls on the energy sector – the heart of Russian export revenues. For the first time, the EU has introduced a full ban on imports of Russian liquefied natural gas (LNG). For short-term contracts (up to one year), the restrictions will take effect in six months, and for long-term contracts – from January 1, 2027, a year ahead of the planned schedule. This applies to supplies from key terminals such as Yamal LNG and Arctic LNG-2, controlled by Gazprom and Novatek.
According to Eurostat data, in 2024 the EU imported about 20 billion cubic meters of LNG from Russia – 40% of the total volume. The ban will deprive Moscow of at least €10 billion in annual revenues that funded the war. “This is a decisive step toward stopping Russia’s largest source of income – oil and gas,” emphasized Danish Foreign Minister Lars Løkke Rasmussen, whose country initiated this item during its EU Council presidency. Although some countries like Germany and Belgium still rely on Russian LNG, the EU is already diversifying supplies: agreements with Qatar, the U.S., and Norway will increase by 25% in 2026. China, in turn, has “firmly objected” to these sanctions, citing their impact on the global market.
The package significantly strengthens restrictions on Russia’s “two oil giants” – likely referring to Rosneft and Gazprom Neft – prohibiting any cooperation with them, including insurance and logistics. A separate focus is on the “shadow fleet” of tankers: 117 vessels transporting Russian oil in circumvention of the embargo have been added to the sanctions list. The total number of such tankers now reaches 558, and their owners (often registered in Panama or Liberia) risk asset confiscation in the EU.
“These ‘ghosts’ allow Russia to sell oil at prices three times above the embargo cap, funding missiles that fall on Kyiv,” writes Carnegie Europe analyst Orsino Del Voe. Synchronization with U.S. sanctions announced the same day makes circumvention impossible: the U.S. has blocked Rosneft and Lukoil’s access to global markets, leading to a 3% spike in Brent crude prices within an hour. This “double blow” could reduce Russian oil revenues by 30% in 2026.
The financial block of sanctions expands the ban on transactions with five Russian banks, including smaller institutions that evaded previous waves. Full access to Russian electronic payment systems, including Mir – an alternative to Visa and Mastercard already restricted in 20 countries – is blocked. Additionally, the EU is imposing sanctions on two oil trading companies and one crypto exchange in Tajikistan, Kyrgyzstan, Paraguay, the UAE, and Hong Kong – countries that have become “loopholes” for Moscow. “We are closing the circles where Russia hides behind intermediaries in Asia and Latin America,” Kallas noted in her X post.
These measures will affect 45 new entities, including firms in India and China that supply technologies to the Russian military-industrial complex (MIC). The Chinese side has already “lodged a strong protest” against the inclusion of its companies.
To complicate espionage activities, the EU has introduced a new mechanism for restricting the movement of Russian diplomats within the Schengen Area. With a three-month transitional period, they will be able to travel only with prior approval and within a 100 km radius of embassies. The initiative comes from Czechia, which has suffered cyberattacks from the GRU.
Finally, the package strengthens export restrictions on microchips, semiconductors, and technologies that could be used in Russia’s military-industrial complex (MIC). “This will complicate the production of drones and missiles that terrorize Ukraine,” comments Bruegel expert Marius Marainescu. According to EU data, since the start of the war, Russia has imported components worth €5 billion through China.
The 19th package is not just “another list” but a strategic shift. IMF estimates indicate that sanctions have already reduced Russia’s GDP by 2.5% in 2025, and this package could add another 1-1.5%. For Ukraine, this means fewer resources for the Kremlin on the front lines: fewer drones, less fuel for tanks. “Europe and America are finally moving in unison: pressure is mounting, excuses are fewer,” writes political analyst DL_InsightsAndNews on X.
Challenges remain: Russia is seeking markets in Asia, and the “shadow fleet” is evolving. China and India, included in the list, may respond with protectionism. Yet despite this, the EU demonstrates unity: 27 countries, from the Baltics to Spain, voted “yes.”
The approval of the 19th package is not only an economic blow but also a moral signal: Europe is not tiring of supporting Ukraine. As von der Leyen noted, “we will not back down.” Next steps – the 20th package and, possibly, the confiscation of €300 billion in Russian assets. The war continues, but the aggressor’s resources are dwindling. For Ukrainians, this is another step toward victory.