Economy

EU’s 19th Sanctions Package: Can Brussels Outmaneuver Russia’s Shadow Fleet and Navigate Trump’s Demands?

EU proposes sanctions vs. Russia: LNG, banks, crypto, “shadow fleet,” aiming for 2027 fossil fuel phase-out.

September 19, 2025, 9:25 PM

Zelenskiy and Von Der Leyen at press conference with flags

Ukrainian President Volodymyr Zelenskiy and European Commission President Ursula Von Der Leyen participate in a joint press conference in Kyiv, Ukraine, on February 24, 2024. By paparazzza / Shutterstock.com.

Executive Summary

The European Commission proposed its 19th sanctions package against Russia, targeting LNG imports, banking, cryptocurrency platforms, and the “shadow fleet” of vessels.

The EU aims to accelerate its phase-out of Russian LNG imports by one year to January 1, 2027, influenced by direct calls from President Donald Trump.

The proposed sanctions require unanimous approval from member states, facing potential challenges from Hungary and Slovakia due to their continued reliance on Russian energy.

The Story So Far

The European Commission’s proposed 19th package of sanctions against Russia is a direct response to intensified Russian attacks on Ukraine, aiming to cripple Russia’s war economy, which is heavily sustained by fossil fuel revenues. This package not only expands targets but also accelerates the EU’s existing goal to phase out Russian fossil fuels by one year to January 1, 2027, a timeline partly influenced by direct calls from Donald Trump for European nations to immediately sever energy ties with Moscow.

Why This Matters

The European Commission’s proposed 19th sanctions package aims to significantly accelerate the EU’s energy independence by moving the Russian LNG phase-out to January 1, 2027, while also broadening economic pressure on Moscow by targeting its “shadow fleet,” cryptocurrency platforms, and major oil providers. However, the package’s implementation faces potential internal challenges, as it requires unanimous approval among member states, with nations like Hungary and Slovakia, influenced by President Donald Trump’s calls for immediate energy severance, possibly leveraging their veto power to secure concessions.

Who Thinks What?

The European Commission, led by President Ursula von der Leyen, proposes a 19th package of sanctions to tighten the economic squeeze on Russia, aiming to accelerate the EU’s phase-out of Russian LNG by one year to January 1, 2027, and target its banking sector, cryptocurrency platforms, and “shadow fleet” to cut fossil fuel revenues.

President Donald Trump urges European nations to immediately sever energy ties with Moscow, stating this would be a condition for him to impose “major sanctions” on Russia and criticizing allies for purchasing Russian oil as it weakens their negotiating position.

Hungary and Slovakia, historically reliant on Russian energy via the Druzhba pipeline and having leveraged veto power for concessions, acknowledge their ongoing dependency on Moscow for energy supplies, making their stance on the Commission’s proposed accelerated LNG phase-out uncertain.

The European Commission has proposed a comprehensive 19th package of sanctions against Russia, targeting its liquefied natural gas (LNG) imports, banking sector, cryptocurrency platforms, and the “shadow fleet” of vessels. Unveiled on Friday by President Ursula von der Leyen, the measures aim to accelerate the EU’s phase-out of Russian fossil fuels by one year to January 1, 2027, amidst intensified Russian attacks on Ukraine and direct calls from President Donald Trump for European nations to sever energy ties with Moscow immediately.

Expanded Sanctions Portfolio

The proposed sanctions package seeks to tighten the economic squeeze on Moscow. It targets 118 vessels associated with Russia’s “shadow fleet” and, for the first time, includes cryptocurrency platforms that the Commission identifies as being used by Russia for transaction laundering in the global financial market.

Beyond financial mechanisms, the new measures also aim to impose a “full transaction ban” on leading Russian oil providers Rosneft and Gazprom Neft. Additionally, refineries, oil traders, and petrochemical companies found purchasing Russian oil in violation of Western sanctions would face restrictions.

President von der Leyen emphasized the strategic intent behind these actions, stating that “Russia’s war economy is sustained by revenues from fossil fuels. We want to cut these revenues. It is time to turn off the tap.”

Accelerated Energy Independence

The core of the energy sanctions is an accelerated timeline for ending EU purchases of Russian LNG. Brussels had previously set an ambitious roadmap to eliminate all Russian fossil fuel imports by the end of 2027. The new proposal brings this deadline forward by a full year, aiming for cessation by January 1, 2027.

This acceleration follows public statements from President Donald Trump, who urged Europeans to immediately cut off energy ties with Moscow. Trump indicated that such a move would be a condition for him to impose “major sanctions” on Russia, a step he has not yet taken.

In an open letter to “all NATO nations and the world,” Trump stated, “The purchase of Russian Oil, by some, has been shocking! It greatly weakens your negotiating position, and bargaining power, over Russia.” He reiterated this message during a state visit to the UK, asserting, “I’m willing to do other things, but not when the people that I’m fighting for are buying oil from Russia.”

Challenges to Unanimity

The proposed package faces discussions among member states, where unanimity is required for approval. A long-standing legal exemption allows Hungary and Slovakia to continue purchasing Russian crude oil via the Druzhba pipeline, a carve-out that has been in place since mid-2022 and has not been revisited.

Both Hungary and Slovakia have historically aligned themselves with the policies of the White House since President Trump’s re-election. However, the latest demands from the US President have prompted them to acknowledge their ongoing dependency on Moscow for energy supplies. The stance these nations will adopt towards the Commission’s proposal remains uncertain, given their history of leveraging veto power to secure concessions.

Broader Scope and Global Impact

Beyond energy and banking, the Commission’s plan includes new restrictions on exports of dual-use goods. It also targets entities outside Russia that assist in evading sanctions, specifically mentioning some in China, which Brussels identifies as a “key enabler” of the conflict.

Notably, the 19th package does not incorporate the 50% to 100% tariffs on China that President Trump had requested in his open letter to NATO allies. President von der Leyen affirmed the effectiveness of existing measures, stating, “Our economic analysis is clear: our sanctions are severely affecting the Russian economy. Russia’s overheated economy is coming to its limit.”

Outlook

This latest round of proposed sanctions underscores the European Union’s ongoing commitment to leveraging economic tools to influence the conflict in Ukraine. By targeting critical revenue streams and tightening enforcement mechanisms, the EU aims to further constrain Russia’s war economy, while navigating complex internal political dynamics and external pressures related to global energy markets and strategic alliances.