Thursday, October 23, 2025

EU Escalates Economic War, Takes Aim at Russia's 'Shadow Fleet' and New Lifelines in China and India

CaliToday (23/10/2025): The European Union has agreed in principle to its 19th sanctions package against Russia, a sweeping new offensive that includes a landmark ban on Russian gas and targets the "shadow fleet" of tankers circumventing oil restrictions.


In its most significant and potentially volatile escalation, the package also directly targets third-country entities including those in China and India that the EU accuses of helping Moscow finance its war in Ukraine.

The move puts Brussels on a direct collision course with Russia's new economic order, one that Moscow has successfully built with Beijing and New Delhi since 2022.

Package 19: Targeting Gas, Oil, and Enablers

According to reports from dpa and Reuters, the new measures are designed to plug the remaining holes in the West's economic blockade. The key proposals include:

  • A Ban on Russian LNG: For the first time, the package proposes a ban on the import of Russian liquefied natural gas (LNG) into the EU market.

  • Targeting the 'Shadow Fleet': It adds 118 vessels from Russia's "shadow fleet" to a blacklist, aiming to cripple the clandestine shipping network used to transport oil.

  • Full Embargo on Energy Giants: The measures impose a full trade embargo on two of Russia's largest energy companies, Rosneft and Gazpromneft.

  • Sanctioning Evaders: The list targets four additional companies involved in the oil industry that are believed to have been actively helping Russia evade existing Western sanctions.

The final text was reportedly agreed upon by all member states, but its formal adoption was briefly stalled by Slovakia over what Reuters described as "unrelated issues." However, reports on Thursday indicated the final holdout had dropped its veto, with formal approval expected on October 23.

A New Front: The EU Turns its Sights on China and India

This package brings to life a far more aggressive strategy first proposed by European Commission President Ursula von der Leyen in September. She called for targeting "refineries, oil traders, and petrochemical companies in third countries," explicitly including China, with Indian firms also potentially being targeted.

This move directly confronts the economic reality that has defined the conflict since 2022. While the West cut its purchases, Russia successfully re-routed its vast energy supplies to Asia.

China and India have since become Moscow's primary and most indispensable customers, absorbing the massive volumes of crude oil the EU once consumed.

Both Asian powers have firmly resisted Western demands that they join the sanctions regime or reduce their dependency on Russian energy. Citing their own domestic economic needs and clear-eyed national interests, they have continued to purchase Russian crude, often at a discount.

Russian President Vladimir Putin has been unequivocal on this point. He has repeatedly issued stark warnings to the West, cautioning them against applying pressure or attempting to "punish" China and India for their legitimate trade with Moscow.

The EU's 19th sanctions package, therefore, represents a major strategic gamble. By targeting the third-country enablers, Brussels is no longer just in an economic fight with the Kremlin; it is now challenging the economic sovereignty of the new energy alliances that have sustained Russia's war effort.


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