Overview of the 17th sanctions package against Russia

What you need to know

• The EU has intensified restrictions on Russia’s “shadow fleet,” doubling the number of vessels subject to port access bans and service prohibitions.
• To ensure effectiveness, financial sanctions have been imposed on actors supporting the shadow fleet including certain UAE, Turkish and Hong Kong entities and on a major Russian oil company and a Russian oil shipping firm.
• The EU has also extended financial sanctions to industrial enablers (also third country enablers) supplying machine tools to the Russian military and industrial sector and to certain entities in China, Belarus and Israel for their provision of critical components to the Russian military.
• Export restrictions concerning chemical precursors and (additional) spare parts for machine tools have been inserted.

Overview

On 20 May 2025, the Council of the EU adopted its 17th package of sanctions against Russia. This latest round of restrictive measures is characterised as a significant escalation in the EU’s efforts to curtail Russia’s military capabilities and resources.

Targeting the shadow fleet and oil revenues 

The central focus of the 17th package is Russia’s so-called "shadow fleet": a network of oil tankers and other vessels facilitating the transport of Russian oil, often employing irregular and high-risk shipping practices to avoid oil price cap sanctions. The EU has doubled the number of vessels subject to port access bans and prohibitions on a wide range of services, with 189 additional vessels designated, bringing the total number to 342.

In addition to targeting the vessels themselves, the EU has imposed individual financial sanctions (including asset freezes and prohibitions on making funds available under Regulation (EU) No 269/2014) on actors enabling the shadow fleet’s operations. This includes shipping companies from the United Arab Emirates, Türkiye, and Hong Kong, as well as one major insurer of the Russian oil shipping industry.

Additionally, individual sanctions have been imposed on Surgutneftegaz (a major Russian oil company which generates significant income for the Russian government and directly supporting its military campaign) and a Russian shipping firm.

Sanctions on military suppliers

Similarly, more than 45 Russian companies and individuals supplying the Russian military with drones, weapons, ammunition, military equipment, critical components, and logistical support are now subject to asset freezes and prohibitions to make funds and economic resources available.

The EU also extended export restrictions to goods involved in Russia’s military, technological, and defence development, including chemical precursors linked to missile propellants and further machine tool components.

Addressing third-country support and circumvention

Recognising the role of certain third country actors in supporting Russia’s military-industrial complex, the EU has extended financial sanctions to industrial enablers (including Chinese entities) supplying machine tools and other critical components to the Russian military and industrial sector. Three Chinese entities (including state-owned), a Belarusian entity, and an Israeli entity have also been added for providing components for drone production. 

Additionally, 31 new entities are now subject to tighter export restrictions on dual-use goods and technologies, with some located in Serbia, the United Arab Emirates, Türkiye, Vietnam and Uzbekistan.

Conclusions and what to expect

Amidst failing attempts to agree on an unconditional ceasefire and negotiate an end to the war, the EU has reiterated its condemnation of Russia’s aggression. The additional shadow fleet sanctions represent the largest single G7 action targeting shadow fleet vessels, although other G7 partners such as the UK have simultaneously announced shadow fleet sanctions. Global businesses involved in the oil supply chain will need to remain particularly vigilant.

With the addition of a total 75 new sanctions listings (17 persons and 58 entities), EU restrictive measures now apply to over 2,400 individuals and entities. 

This 17th sanctions package comes just three months after the previous package (see our March 2025 update) and the EU is already considering a new set of measures, not trusting that Russia is interested in peace or ceasefire under acceptable conditions.