On April 23, the EU Member States gathered at the Council and adopted the 20th package of sanctions against Russia and approved a 90 billion euro aid package for Ukraine.
Context: The European Union has the authority to impose economic sanctions in various sectors (finance, trade, energy, etc.) and individual sanctions against individuals (asset freeze, travel bans). These sanctions are designed to target the Russian economy and individuals believed to be involved in the aggression in Ukraine. The EU also financially supports the war effort in Ukraine, partly through the approved aid package.
The 20th Package of Sanctions Against Russia: The new sanctions package includes measures in the energy sector that target companies, vessels, and ports. Sanctions also aim at the ‘ghost fleet’ sailing under different flags. Additionally, there are restrictions on providing maintenance services for tankers, icebreakers, and maritime services for Russian oil. The finance sector is also impacted by the new measures, particularly directed at Russian banks with whom doing business is prohibited, as well as illicit transactions to certain banks in Kyrgyzstan, Laos, or Azerbaijan that bypass the sanctions. A new addition in this package is the inclusion of cryptocurrencies, specifying the illegality of supporting the RUBx cryptocurrency, digital ruble, or a stable coin backed by the ruble, for example. Trade-related measures are also strengthened to restrict or prohibit the import or export contributing to the development of the Russian military-industrial complex. This includes bans on exporting specific tractors, metals, chemicals, minerals, and cybersecurity services. 58 companies and individuals involved in manufacturing military goods, including dual-use items, in third countries other than Russia, are also sanctioned. Regarding research and innovation, a ban on accepting funding from the Russian government has been added, along with prohibitions on disseminating Russian propaganda from TV channels or Russian media prohibited in the EU. European companies are now better legally protected against legal actions in Russian courts, with fines possible for those bringing abusive lawsuits, and companies able to seek damages for unfair judgments. For the first time, anti-avoidance measures from the 11th package are applied against a country, Kyrgyzstan, for failing to prevent the sale, transfer, or export of European goods used in making drones and missiles in Russia, and companies from third countries.
The Aid Package for Ukraine: Negotiations for this aid package were initially delayed due to a Hungarian veto, but following new legislative elections favoring the pro-European Hungarian party, an agreement was reached. Financed through loans on the markets by the European Commission, this aid package will support the war effort in 2026 and 2027 through two envelopes. 30 billion euros will be allocated for macroeconomic support to Ukraine, while the second amount of 60 billion euros will finance defense industrial capacities, allowing Ukraine to procure from the EU, EEA countries, or other third countries with a bilateral agreement with the EU or under specific conditions. Ukraine is expected to repay the aid through war reparations from Russia, with EU countries stepping in if this is not feasible. Hungary, Slovakia, and the Czech Republic will not participate in financing or repayment. In exchange, Ukraine commits to continue democratic reforms and anti-corruption efforts.
For more information: – Press release from the Commission on the 20th package of sanctions – Commission’s FAQ page on the 20th package of sanctions – Press release from the Council on the aid package for Ukraine.
