EU Escalates Energy War with Proposed Ban on Russian Oil Shipping and Third-Country Port Sanctions

 

BRUSSELS – The European Commission has unveiled a provocative 20th sanctions package aimed at dismantling the logistical backbone of Moscow’s energy exports. In a significant strategic pivot, Brussels is moving beyond the embattled G7 price cap toward a comprehensive ban on all European maritime services for tankers carrying Russian crude. The proposal also marks a geopolitical first: the potential blacklisting of specific port facilities in third countries—specifically in Georgia and Indonesia—accused of facilitating Russia’s "shadow fleet."

Since its inception in late 2022, the $60-per-barrel price cap has faced mounting criticism for its porous enforcement. While the mechanism was designed to keep oil flowing while starving the Kremlin of revenue, the rise of an opaque shadow fleet has allowed Russian Urals crude to trade consistently above the threshold. Commission spokesperson Paula Pinho indicated that a blanket ban on maritime services would significantly complicate Russian logistics. Nordic nations, led by Sweden and Finland, have been the primary architects of this shift, arguing that the existing two-tier system contains too many loopholes for exploitation.

A central pillar of the new proposal is the targeting of the Kulevi port in Georgia—owned by Azerbaijan’s state oil company SOCAR—and the Karimun port in Indonesia. By adding these hubs to the sanctions list, the EU would prohibit its companies and individuals from engaging in any transactions with them. This move into third-country infrastructure signals a hardening of the EU’s stance against secondary circumvention, aiming to isolate the transshipment points that allow Russian oil to reach global markets under the radar.

However, the proposal faces a precarious path toward the required unanimous approval of all 27 member states. Internal friction is already surfacing, as Greece and Malta—nations with massive commercial shipping interests—have signaled hesitation. There are concerns that a total ban on maritime services could cede market share to non-Western shipping firms while increasing macroeconomic volatility. Critics also point out that the package’s success remains heavily dependent on rigorous sea enforcement and continued coordination with the White House, which has recently focused on sanctioning specific entities like Rosneft and Lukoil.

Beyond energy, the 20th package broadens its scope to include new import bans on Russian metals and raw materials, targeting the industrial components that sustain Moscow’s long-term economic resilience. As the EU seeks to finalize the measure, the global shipping industry is bracing for a fundamental realignment. The strategy shifts the focus from the price of the commodity to the infrastructure of the trade itself, betting that by grounding the fleet and closing the ports, it can finally sever the financial lifelines of the Russian energy sector.

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