EU agrees on tougher sanctions to curb Russia's tech access and revenues

After more than a month of negotiations, EU countries agreed on Thursday on the 14th package of sanctions against Russia. European Commission President Ursula von der Leyen announced that the new restrictions are intended to hinder the Kremlin's access to technology and limit its revenues from energy exports.

Ultimately, the new tranche of restrictions on Russia will be accepted by foreign ministers at a meeting in Luxembourg scheduled for June 24. At that time, the final shape of the agreement reached between member countries will also be published.

"This hard-hitting package will further deny Russia access to key technologies," wrote von der Leyen on social media platform X, expressing satisfaction with the agreement. "It will strip Russia of further energy revenues. And tackle Putin’s shadow fleet and shadow banking network abroad.," she emphasized.

The European Commission presented the 14th sanctions package in early May. It proposes that the EU prohibit ships transporting Russian goods that generate significant profits for the Kremlin from leaving European ports.

This includes a ban on the re-export of Russian liquefied natural gas (LNG) through EU ports. However, it does not include limiting the export of Russian LNG to Europe itself.

As confirmed on Thursday by EU sources, the agreed package includes measures concerning the import, investment, and handling of LNG within EU countries.

Belgium, which holds the presidency, announced that the new package will also "provides new targeted measures and maximizes the impact of existing sanctions by closing loopholes."

This involves strengthening EU mechanisms to prevent circumvention of sanctions, particularly in the case of subsidiaries from third countries owned by companies based in the EU. Tightening EU regulations will also apply to financial services. "A range of transport measures will aim to prevent the circumvention of sanctions in air, road, and maritime transport," an EU source unofficially listed.

The new restrictions will also apply to the export of dual-use goods and technologies (including to third countries) that Russia might use in the war against Ukraine. They will also hinder the export of goods contributing to the development of the Russian industry.

The sanctions list will also be expanded. It will include over 100 new individuals and entities and contain over 2,200 entries in total.

According to diplomatic sources, Germany raised concerns about the 14th sanctions package, fearing that companies would bear too much responsibility for breaking the ban.

The EU aimed to agree on new sanctions before the G7 summit, which took place in Italy on June 13-14. Ambassadors also tried to reach an agreement the night before the peace summit in Switzerland, organized on June 15-16, set for 4:00 PM Eastern Time.