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Update: EU Stays Committed to Energy Sanctions on Russia

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(Updates to include background on EU sanctions on Russia from paragraph 10 to 15.)

The EU on Wednesday said it remains committed to its sanctions on energy imports from Russia despite the ongoing energy supply crisis fueled by the ongoing conflict in the Middle East.

"We remain committed to our sanctions on imports of Russian oil and gas, and we need to reiterate the call for Russians not to be benefitting from the ongoing conflict in the Middle East," European Commission Chief Spokesperson Paula Pinho told reporters at a news briefing. "It's too ironic."

Pinho was responding to a question on whether countries like the US and UK were undermining the EU strategy to pressurize Russia over its war with Ukraine through sanctions.

Reuters reported on Wednesday that Russian oil and gas revenue in May increased 39% year over year due to the Middle East conflict.

"We'll see what the future brings. We have not hesitated in standing by a number of sanctions against the US. As recently as two weeks ago, we had an agreement on the 20th package of sanctions. What will come next remains to be seen," she added.

On Tuesday, the UK introduced a new general trade license covering sanctioned processed oil products under Russia-related trade restrictions.

The license, effective from Wednesday, applies to diesel and jet fuel products refined in third countries using Russian-origin crude oil and will remain valid indefinitely unless authorities later amend, suspend, or revoke the authorization.

The UK also published a separate temporary license covering maritime transportation and related services linked to liquefied natural gas activities under the Russia sanctions rules.

Earlier this week, US Treasury Secretary Scott Bessent said that the Trump administration is issuing a temporary 30-day general license to provide the most vulnerable nations with the ability to temporarily access Russian oil currently stranded at sea.

"This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed. This general license will help stabilize the physical crude market and ensure oil reaches the most energy-vulnerable countries. It will also help reroute existing supply to countries most in need by reducing China's ability to stockpile discounted oil," Bessent said in a social media post on X.

In April, the EU unveiled its 20th package of sanctions against Russia which included sanctions on 46 more vessels in Russia's shadow fleet, bringing the total number of designated vessels to almost 632.

The EU also introduced new safeguards on tanker sales to prevent EU-built or sold vessels from entering Russia's shadow fleet, including mandatory contractual clauses barring Russian use. The bloc also banned maintenance services for Russian LNG tankers and icebreakers and moved to allow EU companies to exit long-term contracts at LNG terminals.

The EU's latest sanctions package also targeted Russia's Murmansk and Tuapse ports, while also blacklisting a third-country facility, Indonesia's Karimun Oil Terminal, for links to sanctions circumvention.

The package also laid the groundwork for a future ban on maritime services transporting Russian oil, pending coordination with the Group of Seven.

The new measures were in addition to the EU prohibition on the import of seaborne crude oil and refined petroleum products from Russia, a ban on Russian liquefied petroleum gas imports after a 12-month grace period for existing deals, while long-term Russian liquefied natural gas imports are banned from Jan. 1, 2027.

In 2021, the EU's Russian oil imports totaled 71 billion euros ($82.35 billion), with crude oil accounting for 48 billion euros and 23 billion euros coming from refined oil products.

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