The European Union granted approval this Thursday to a fifth package of sanctions aimed at Russia over its invasion of Ukraine, including renewed restrictions on Russian coal imports. The measures respond to civilian casualties seen in cities near Kyiv, such as Bucha, and mark a new tightening of economic pressure on Moscow.
Diplomatic sources told Europa Press that ambassadors at the 27-member level gave final assent to a “strong” package of measures. It represents the first time the EU has targeted Russia’s energy sector with coal-focused restrictions, signaling a broader strategy to hit core energy-related revenues while leaving some sectors functionally intact for humanitarian and essential needs.
Officials estimate the impact could reach around 4 billion euros per year in Russian state revenue. While this is smaller than the revenue Russia derives from gas and oil, which amounts to roughly 800 million euros daily and remains outside these sanctions, the coal cut is designed to shave a meaningful chunk off Moscow’s energy income.
Over the course of meetings held on Wednesday and Thursday, EU members finalized the text, ironing out technical details that had raised questions among governments. The package is expected to take effect on Friday morning once the written procedure led by ambassadors is completed.
In parallel, the package expands restrictions on the Russian banking sector, targeting four major banks, including VTB, Russia’s second-largest lender. The aim is to weaken the country’s financial system by reducing access to the European market, with potential impact estimated around 23% of the Russian banking sector’s footprint, according to Community Management estimates.
Additionally, the EU will bar entry of Russian vessels in European ports, extending an existing ban on air transport. Exemptions include agricultural and food exports, humanitarian aid, and essential energy services necessary to prevent broader disruption.
The package also tightens controls on road transport operators within Russia and Belarus, a measure described as likely to substantially limit Moscow’s access to certain goods.
The sanctions are projected to suppress the Russian economy by about 10 billion euros and target sectors where Moscow is most vulnerable, such as quantum computing, semiconductors, precision machinery, and transport equipment. Ursula von der Leyen, the president of the European Commission, underscored that these restrictions would reduce Russia’s technological capability when presenting the package last Tuesday.
Beyond the energy measures, the fifth package bans imports of selected Russian products including timber, cement, and spirits, reinforcing the effort to curtail financial channels tied to oligarchs and mobilizing a yearly flow of around 5.5 billion euros. The overall aim is to decrease Moscow’s economic resilience by cutting off lucrative trade routes.
Finally, all 27 EU member states agreed to veto the general participation of Russian companies in public procurement processes and to withhold any European or national financial support for Russian public institutions.
Next step
While Brussels stopped short of calling for an immediate end to Russian gas or oil purchases, differences among member states persist. High Representative of the Union for Foreign Affairs and Security Policy Josep Borrell noted that the bloc’s foreign ministers are expected to discuss possible new sanctions on Russian oil and gas at the Foreign Affairs Council meeting next Monday.
The EU leadership has signaled that a move on broader energy sanctions could come once consensus solidifies among members.
President of the European Council Charles Michel echoed the sentiment in public remarks, suggesting that, sooner or later, oil and gas sanctions would be part of future action. These indications come as policymakers weigh the long-term economic and strategic consequences of expanding or delaying further measures.
The biggest hurdle for any additional sanctions remains the reluctance of several European partners. Germany and Austria have hesitated to cut off Russian gas immediately, while Hungary has warned against energy embargo measures that could threaten its energy security.
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