On 6 February, the European Commission proposed the 20th package of sanctions against Russia.

At the centre of the new suggested measures is a full maritime services ban for Russian crude oil. This extends existing restrictions and aims to restrict access to EU transport, insurance, and other essential maritime services supporting Russian oil shipments and would mark the end of the EU Oil Price Cap mechanism.

Additional measures include:
• A broadening of the shadow-fleet crackdown, with 43 more vessels designated, bringing the total to 640.
• Sweeping service bans related to LNG tankers and icebreakers, hitting gas export projects.
• Further pressure on Russia’s financial system, with 20 more regional banks listed and new actions targeting cryptocurrency platforms used to bypass sanctions.
• Expanded export and import bans, covering goods and services worth over €900 million combined, including cyber-security services, chemicals, metals, rubber, and equipment linked to battlefield use.
• New controls to prevent circumvention, including activation of the EU’s Anti-Circumvention Tool for the first time, banning exports of CNC machines and radios to high-risk jurisdictions.

European Commission President Ursula von der Leyen stated: “The new package of sanctions covers energy, financial services and trade. On energy, we introduce a full maritime services ban for Russian crude oil. It will slash further Russia’s energy revenues and make it more difficult to find buyers for its oil.”

The proposed package is expected be subject to ratification toward to the end of this month to coincide with the 4th anniversary of Russia’s invasion of Ukraine on the 24 February 2022. Links to the EU Commission press release can be found here.

Meanwhile, the United States announced a further round of Iran-related sanctions on 6 February targeting elements involved in the trade of Iranian petroleum, petroleum products and petrochemicals. The US Department of State stated the measures designate 15 entities, two individuals and 14 vessels assessed to be part of a network facilitating the transport and sale of Iranian energy commodities.

US authorities state that the designations are intended to disrupt revenue streams derived from Iranian oil and petrochemical exports and to deter third-country facilitators, including shipping and trading intermediaries. The measures typically involve asset freezes under U.S. jurisdiction, prohibitions on U.S. persons engaging in transactions with designated parties, and the potential for secondary sanctions exposure for non-U.S. actors providing material support to sanctioned entities or vessels. As with previous actions, the designations reinforce due-diligence expectations across shipping, insurance, finance and commodity-trading sectors, particularly in relation to vessel ownership structures, AIS activity, ship-to-ship transfers and cargo provenance.

Separately, OFAC has issued updated Frequently Asked Questions (FAQs) concerning Venezuela-related sanctions These FAQs provide technical clarification on the scope and application of US measures affecting Venezuelan oil and related transactions, including licensing arrangements, wind-down provisions and compliance expectations for counterparties engaging in energy trade connected to Venezuela.

Source: Baltic Exchange