On April 23rd, EU member states gathered at the Council and adopted the 20th sanctions package against Russia, along with approving a €90 billion aid package for Ukraine.
Context The EU has the authority to impose economic sanctions in various areas such as finance, trade, and energy, as well as individual sanctions against individuals, aiming to penalize the Russian economy and individuals involved in aggression in Ukraine. The EU financially supports the war effort in Ukraine, including through the approved aid package.
The 20th Sanctions Package Against Russia The new sanctions package includes measures in the energy sector targeting companies, ships, and ports. It also addresses the ‘ghost fleet’ operating under a different flag and prohibits the provision of maintenance services for tankers, icebreakers, and maritime services for Russian oil. In the financial sector, measures have been adopted, notably targeting Russian banks banned from transactions, as well as illicit transactions to certain banks in Kyrgyzstan, Laos, or Azerbaijan, bypassing the sanctions. A new addition in this package involves the introduction of cryptocurrencies, with supporting the RUBx cryptocurrency, digital ruble, or a stable coin linked to the ruble. In terms of trade, measures are strengthened to restrict or ban imports or exports contributing to the development of the Russian military-industrial complex. This includes export bans on certain tractors, metals, chemicals, minerals, and cybersecurity services. Companies and individuals involved in the development and production of military goods, including dual-use, in third countries apart from Russia, are also sanctioned. Regarding research and innovation, a ban on accepting funding from the Russian government and dissemination of Russian propaganda from banned TV channels or media in the EU has been included. European companies are now legally protected against lawsuits in Russian courts, with fines for abusive legal actions and the ability to claim damages in case of abusive judgments. Additionally, for the first time, anti-circumvention measures from the 11th package have been activated against a country, Kyrgyzstan, for failure to prevent the sale, transfer, or export of European goods used in making drones and missiles in Russia, and third-country entities are involved.
The Aid Package for Ukraine Negotiations for this aid package were initially halted due to a Hungarian veto but resumed after the new Hungarian parliament, which is pro-European, was elected. The aid, financed through loans on the markets by the European Commission, aims to support the war effort for 2026 and 2027. €30 billion is allocated for macroeconomic support for Ukraine, while €60 billion will fund defense industrial capabilities, enabling Ukraine to source from the EU, EEA countries, or other third countries with bilateral agreements with the EU or under specific conditions. Ukraine is expected to repay the aid with war reparations from Russia, with EU countries stepping in if Ukraine fails to do so. Hungary, Slovakia, and the Czech Republic will not participate in financing or repayment. In exchange, Ukraine commits to democratic reforms and combating corruption on its territory.
For more information: Press release from the European Commission on the 20th sanctions package Commission’s Q&A page on the 20th sanctions package Press release from the Council on the aid package for Ukraine
