EU announces 19th sanctions package against Russia…"Will block virtual asset transactions"

The European Union (EU) announced its 19th sanctions package against Russia. The measures include a complete ban on imports of Russian liquefied natural gas (LNG) and, for the first time, restrictions on virtual asset (cryptocurrency) platforms and transactions.

Ursula von der Leyen, President of the European Commission, said in a speech on the 19th (local time) that "Russia has recently carried out the largest drone and missile attacks since the war began, which is a clear disregard for diplomacy and international law," and added, "In response, the EU is stepping up pressure."

She emphasized, "The core of these sanctions is to cut off energy revenues," saying, "We are banning imports of Russian LNG and lowering the oil price cap to $47.6." She also added, "We have added 118 vessels belonging to the shadow fleet (Shadow Fleet) to the sanctions list, bringing the total to more than 560 vessels under sanction."

The EU also strengthened financial sanctions in this package. Some banks within Russia and in third countries were added to the new transaction ban list, and foreign financial institutions linked to alternative Russian payment systems were also targeted. Von der Leyen said, "As evasion methods become more sophisticated, EU sanctions are evolving as well," and "For the first time, we are sanctioning virtual asset platforms and banning transactions based on virtual assets."

Sanctions on military-related goods were expanded as well. The EU added 45 companies in Russia and third countries to the sanctions list and tightened restrictions on the direct export of technologies and items used on the battlefield, such as drones. Von der Leyen said, "In a war driven by innovation, cutting off Russia's access to advanced technology is key," and "The effect of the sanctions is already showing as serious pressure across the Russian economy." In fact, Russia's benchmark interest rate has soared to 17%, inflation continues to rise, and the war economy appears to be reaching its limits, according to EU analysis.

The EU is also preparing measures to use frozen Russian assets to fund Ukraine's defense. Von der Leyen said, "The perpetrator, Russia, should bear the cost of the war," and explained, "We will propose a method to provide loans to Ukraine based on the cash balances generated, without touching the principal of the assets."

She added, "These sanctions are coordinated with G7 allies," and "Europe has stood with Ukraine since the early days of the war and will continue to use all means to bring Russia to the negotiating table."