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EU Targets Russia’s LNG, Shadow Fleet, and Energy Giants: Will Sanctions Finally “Turn Off the Tap”?

EU proposes new sanctions on Russia: LNG, tankers, and energy firms targeted to pressure Moscow.

September 19, 2025, 11:54 AM

Red pipes and white superstructure of an LNG ship under a cloudy sky

A view from the deck of a Russian Liquefied Natural Gas (LNG) ship, showing prominent red pipes, the white superstructure, and a crane against a dramatic, cloudy sky. By MDL.

Executive Summary

European Commission President Ursula von der Leyen urged EU member states to approve a new, 19th package of sanctions targeting Russia.

The proposed sanctions focus on Russia’s liquefied natural gas (LNG) exports, its “shadow fleet” of oil tankers, and major energy companies like Rosneft and Gazprom Neft.

The package also includes measures against entities fueling Russia’s war effort, export restrictions on battlefield technologies, and provisions to prosecute individuals involved in the abduction of Ukrainian children.

The Story So Far

The European Union is proposing its 19th package of sanctions against Russia, driven by its ongoing full-scale invasion of Ukraine since February 2022, and the need to intensify pressure on Moscow. These measures aim to significantly curtail Russia’s vital energy revenues, particularly from lucrative LNG exports where Europe remains a major buyer, and target entities supporting its war economy, building upon 18 previous sanction packages designed to compel Russia towards peace negotiations despite potential challenges in securing unanimous member state approval.

Why This Matters

The EU’s proposed 19th sanctions package aims to significantly intensify economic pressure on Russia by targeting its lucrative LNG exports, expanding measures against its “shadow fleet” of oil tankers, and imposing transaction bans on major energy companies like Rosneft and Gazprom Neft, all to restrict funding for its war in Ukraine. However, securing unanimous approval among the 27 member states, especially given past resistance from countries like Hungary and Slovakia to phasing out Russian LNG, poses a significant challenge to the package’s swift implementation, while also introducing measures to prosecute individuals involved in the abduction of Ukrainian children.

Who Thinks What?

European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas assert that the proposed package of sanctions, targeting Russia’s LNG exports, its “shadow fleet” of oil tankers, and major energy companies, is crucial to intensify pressure on Moscow, cut off vital energy revenues, and compel Russia towards peace negotiations, while also facilitating prosecution for the abduction of Ukrainian children.

Hungary and Slovakia, among other member states, have previously expressed opposition to phasing out Russian LNG, which could pose a significant obstacle to securing the unanimous approval required for the new sanctions package.

European Commission President Ursula von der Leyen on Friday urged European Union member states to approve a new package of sanctions targeting Russia’s liquefied natural gas (LNG) exports, its “shadow fleet” of oil tankers, and major energy companies. Speaking from Brussels, von der Leyen stated that these measures are crucial to intensify pressure on Moscow over its war in Ukraine, aiming to “turn off the tap” on vital energy revenues and compel Russia towards peace negotiations.

Proposed Sanctions Overview

The proposed sanctions package, which requires endorsement from all 27 EU countries, seeks to significantly broaden the scope of existing punitive measures against Russia. This would mark the bloc’s 19th set of sanctions since the full-scale invasion of Ukraine in February 2022.

Energy Exports and Shipping

A key focus of the new proposals is Russia’s lucrative LNG exports. Von der Leyen emphasized the need to “turn off the tap” on LNG, with EU foreign policy chief Kaja Kallas separately indicating an aim for a “full prohibition of Russian LNG imports by January 2027.” Europe currently represents the largest buyer of Russian LNG, absorbing approximately half of Russia’s total exports, which accounted for about 16% of the EU’s total LNG imports last year.

The commission also aims to expand sanctions against Russia’s “shadow fleet” of aging oil tankers. The new proposals would target an additional 118 vessels, bringing the total number of sanctioned ships to over 560. Furthermore, major Russian energy trading companies Rosneft and Gazprom Neft would face a full transaction ban, with other companies also subjected to asset freezes.

Broader Economic and Military Targets

Beyond direct energy sales, the proposed sanctions intend to target entities that facilitate Russia’s war effort. This includes going “after those who fuel Russia’s war by purchasing oil in breach of the sanctions,” with plans to target refineries, oil traders, petrochemical companies, and third countries, including China.

The package also includes export restrictions on “items and technologies” that could be used on the battlefield. An additional 45 companies in Russia and elsewhere are slated for sanctions due to “providing direct or indirect support to the Russian military industrial complex.”

Human Rights Concerns

In a separate statement, Kaja Kallas highlighted an additional component of the new proposals: making it easier to prosecute individuals involved in the abduction of Ukrainian children. Russia has faced international condemnation over the forced deportation of Ukrainian families and children since 2022, with Kallas stating the EU “will not let Russia weaponize childhood itself.”

Impact and Challenges

Von der Leyen asserted that existing EU sanctions are having a tangible impact on Russia’s economy, noting that its “overheated war economy is coming to its limit” and pointing to persistent high inflation within Russia. The bloc has already implemented 18 packages of sanctions, affecting over 2,500 entities, including banks, ministries, energy companies, and officials such as President Vladimir Putin and numerous oligarchs.

However, securing unanimous approval for new sanctions packages can be a lengthy process, often taking weeks of negotiation among member states. Hungary and Slovakia, in particular, have previously expressed opposition to phasing out Russian LNG, which could pose a significant obstacle to the proposed measures.