EU Widens Sanctions Net to Ports and Banks Linked to Russian Trade

• EU shifts sanctions outward, targeting foreign ports and banks enabling Russian trade.
• First-ever EU ban hits overseas ports as oil price caps give way to full service bans.
• Crypto-linked banks and metal exports emerge as new fronts in EU sanctions enforcement.

The European Union has moved to significantly widen its sanctions framework by targeting overseas ports and foreign banks linked to Russian trade flows. The proposed measures, now part of the EU’s 20th sanctions package, reflect a tougher stance on third-country actors accused of enabling Russia’s war economy. The initiative signals a shift from focusing only on Russian entities to addressing global networks that help move oil, metals, and digital assets despite existing restrictions.

According to a report, EU officials presented the proposal to member states on Monday. If adopted unanimously, the measures would mark one of the bloc’s most expansive enforcement efforts since the invasion of Ukraine.

Ports in Georgia and Indonesia Face New Restrictions

Significantly, the EU plans to sanction ports outside Europe for the first time. The proposal names Kulevi in Georgia and Karimun in Indonesia as facilities handling Russian oil shipments. Consequently, EU companies and individuals would face a full ban on transactions involving these ports.

This move aligns with a broader policy shift. The EU now plans to replace the G7 oil price cap with a complete ban on maritime services tied to Russian crude. Hence, shipping, insurance, and logistical support linked to sanctioned oil flows would face tighter enforcement.

Additionally, the sanctions package expands import bans across industrial materials. The list includes nickel bars, iron ore products, copper in multiple forms, and scrap metals like aluminum. Moreover, the proposal restricts imports of salt, ammonia, silicon, pebbles, and furskins, closing gaps in earlier trade controls.

Crypto Services and Financial Channels Targeted

The package also introduces the EU’s first use of its anti-circumvention tool against a third country. The measures would block exports of metal-cutting equipment and advanced communications devices to Kyrgyzstan. EU officials view these goods as sensitive due to their potential military or industrial use.

Additionally, the EU plans to sanction two Kyrgyz banks, Keremet Bank and OJSC Capital Bank of Central Asia. Authorities link these institutions to crypto asset services supporting Russian transactions. 

Consequently, EU firms and citizens would lose the ability to transact with them. The proposal also adds banks in Laos and Tajikistan, while removing two Chinese lenders after reassessments.

Expanded Corporate and Individual Listings

Moreover, the sanctions package broadens asset freezes and travel bans. The EU plans to list 30 individuals and 64 companies tied to Russia’s energy sector. These include Bashneft and eight Russian refineries, notably major facilities in Tuapse and Syzran.

However, the EU stopped short of listing Rosneft and Lukoil, which already face U.S. restrictions. Overall, the proposal underscores the EU’s intent to disrupt Russia’s economic lifelines across borders, finance, and logistics.

Related: What are the New Crypto Rules in Europe and the UK?