EU’s 17th Sanctions Package in Relation to Russia

On May 20, 2025, the European Union officially adopted its 17th package of sanctions in relation to Russia, as set out in Council Decisions (CFSP) 2025/931 and 2025/936. The sanctions target key aspects of Russia's economic and military infrastructure, with a particular focus on maritime activities, energy revenues, the military-industrial complex, and illegal activities in occupied Ukrainian territories.

1. Targeting the Shadow Fleet

A major component of this package is aimed at dismantling Russia’s so-called “shadow fleet,” which is used to circumvent sanctions and transport crude oil covertly:

• 189 vessels suspected of being part of this fleet have been designated and are now subject to sanctions.
• Three individuals and entities facilitating these operations have also been targeted, including shipping companies and intermediaries based in the United Arab Emirates, Türkiye, and Hong Kong.
• The Insurance Joint Stock Company VSK, a Russian insurer supporting the country’s energy exports, was added to the list, limiting its capacity to underwrite risky maritime operations.

2. Energy Sector Measures

The EU continues to target sources of revenue for the Russian state:

• Surgutneftegaz, one of Russia’s largest oil producers, and Volga Shipping, a key shipping company, have been sanctioned.
• The package, however, extends an exemption for oil transported from Russia’s Sakhalin-2 Project to Japan, recognizing Japan’s energy needs while maintaining overall pressure on Russian exports.

3. Military-Industrial Sector Restrictions

To undermine Russia’s ability to sustain and modernize its war efforts:

• Over 45 Russian companies and individuals providing weapons, drones, ammunition, military equipment, and logistical support to the Russian military have been sanctioned.
• The EU targeted so-called “industrial enablers,” including both Russian and foreign entities, particularly suppliers of machine tools crucial to the defence sector.
• This includes three Chinese entities, one Belarusian, and one Israeli company accused of delivering critical components to Russia’s military.
• 31 new entities have been added to the export control regime, facing restrictions on dual-use goods and technology.
• The list of prohibited exports has been expanded to cover new categories such as chemical precursors for energetic materials and spare parts for machine tools. Under Article 2a of Regulation 833/2014, it is illegal to directly or indirectly sell, supply, or export such items to Russia or for use in Russia.

4. Occupied Territories and Cultural Exploitation

Further sanctions address abuses in occupied Ukrainian regions:

• Individuals and groups responsible for the looting of cultural heritage in Crimea and the illegal exploitation of Ukrainian agricultural production have been sanctioned, reflecting the EU’s commitment to defending Ukrainian sovereignty and cultural identity.

Sanctions support

Geopolitical events have pushed sanctions high up the agenda for everyone involved in the shipping industry. For vessel owners and charterers, commodity traders and individual business owners, the spectre of sanctions - and the consequences of breaching those sanctions - loom large.

If you require support navigating the complex web of sanctions, then Shearwater Law can help. Our sanctions is able to provide a 360 sanctions service, spanning; the screening of customers and suppliers, advice on sanctions regulations, support on sanctions disputes and investigations, and sanctions compliance procedures. 

Speak to Shearwater Law today for trusted sanctions support