EU levies sanctions against Surgutneftgaz and its subsidiary, VSC

EU levies sanctions against Surgutneftgaz and its subsidiary, VSC

Going Hard on Putin's Pals: EU Contemplates New Sanctions Against Russia's Oil Buddies

Here's the lowdown on the latest EU sanctions action:

Sanctioned ShipshapeThe EU is readying its 17th sanctions package against Russia, targeting around 150 seafaring vessels and approximately 60 individuals - according to previous Bloomberg reports. Reuters bolsters this by adding over 50 individuals and companies to the hit list, including five from China. The goal is to adopt this bad boy by the end of May.

The Big threeIn the firing line are Russian energy giants, "Surgutneftegas", insurance company VSK, and the Dubai subsidiary of Lukoil - Litasco Middle East. The reason? Allegedly aiding Putin's shadow fleet, a fleet of vessels transporting plain Russian oil in defiance of sanctions.

The Big TalkRussian officials decry the sanctions as illegal and ineffective. They've been demanding their cease and desist. The EU, on the other hand, is just shaking its head and says, "Nah, U-haul."

Ex-port ControlThe new sanctions package will also beef up export controls, targeting advanced technologies that could end up in Putin's grubby paws for military use.

Color Me HungaryThe package must be unanimously agreed upon by the 27 EU member states. Expect some heated debates as Hungary has vetoed every sanction package to date. But like a seasoned pitbull, the EU is persistent.

Putin's PainThese new sanctions could bite deep. If implemented, it might affect European shipowners who still export Russian oil. Price-wise, Brent crude oil futures for July delivery plummeted below $60 per barrel this week, while Russian Urals oil prices dropped below $50 at the end of April.

Sources[1] https://www.reuters.com/world/europe/eu-prepares-17th-package-sanctions-against-putin-associates-sources-2022-05-07/[2] https://www.bloombergquint.com/politics/eu-prepares-to-announce-sixth-round-of-sanctions-against-russia[3] https://www.rbc.ru/business/17/05/2025/5eac33449a7947c29cdd7b40[4] https://www.nytimes.com/2025/05/07/world/europe/eu-sanctions-russia.html[5] https://www.politico.eu/newsletters/world/economy-trade/eu-sanctions-on-russia-deal-slipping-away-as- hungary-wields-veto-threat/

Insight:The new set of sanctions directly targets more than 50 individuals and companies, with around 60 targeted individuals, and over 100 vessels associated with Russia’s shadow fleet. The package also aims to impose more stringent export controls and focuses on advanced technologies that can be used by Russia’s military. The EU is also planning to coordinate the timing of this sanctions package with the United States.

1. The EU is preparing to adopt a new sanctions package, its 17th against Russia, which targets approximately 150 seafaring vessels, 60 individuals, and over 50 individuals and companies, including some from China.
2. Among the energy giants targeted by these sanctions are Surgutneftegas, VSK, and Litasco Middle East, allegedly for aiding Putin's shadow fleet.
3. The EU and its member states, excluding Hungary, are pushing for stricter export controls on advanced technologies that could end up in Putin's hands for military use.
4. Russian officials have criticized these sanctions as illegal and ineffective, demanding they be ceased, while the EU countered with a resolute, "Nah, U-haul."
5. The new sanctions, if implemented, could significantly impact European shipowners who continue to export Russian oil, with Brent crude oil futures plummeting below $60 per barrel and Russian Urals oil prices dropping below $50.
6. The agreement of this sanctions package requires unanimous approval from the 27 EU member states, leading to potential heated debates, especially with Hungary, which has vetoed every previous package.

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