The European Union (EU) has given the greenlight to a fresh round of sanctions targeting Russia’s energy, banking, and cryptocurrency sectors. These measures, endorsed on Thursday in Brussels, aim to cut off Moscow’s access to critical revenue streams that fund its ongoing war in Ukraine.

As per reports, the latest package bans Russian liquefied natural gas (LNG) imports and tightens financial restrictions on banks. It also expands oversight of cryptocurrency exchanges. Additionally, the package includes travel limitations for Russian diplomats. There are also new penalties against the country’s shadow oil fleet. The move marks one of the EU’s most comprehensive sanctions packages since the invasion of Ukraine began in 2022.

Fresh Ban on Russian LNG, Crypto and Banks

According to a report by The New York Times, the central element of the sanctions is a phased ban on Russian LNG. Under the new plan, short-term LNG contracts will expire within six months. Meanwhile, long-term deals will end by January 2027, a full year earlier than expected. EU leaders say the goal is to eliminate Russia’s influence over Europe’s energy markets. They also aim to halt the flow of gas revenues to the Kremlin.

“We’re keeping the pressure high on the aggressor. For the first time we are hitting Russia’s gas sector – the heart of its war economy,” said European Commission President Ursula von der Leyen on X.

EU Member States have approved our 19th package of sanctions against Russia.

We’re keeping the pressure high on the aggressor.

For the first time we are hitting Russia’s gas sector – the heart of its war economy.

We will not relent until the people of Ukraine have a just and… https://t.co/HQTknzy2uC

— Ursula von der Leyen (@vonderleyen) October 23, 2025

Ursula’s remarks came shortly after the U.S President Donald Trump announced parallel sanctions targeting Russia’s oil giants, Rosneft and Lukoil. The sanctions had been delayed for weeks due to objections from Slovak Prime Minister Robert Fico, who linked his opposition to concerns over energy policy and car regulations. However, these hurdles were resolved late Wednesday after renewed discussions in Brussels. 

“It is extremely positive that we have reached an agreement,” said Denmark’s foreign minister, Lars Løkke Rasmussen. “The sanctions have real impact and are hurting the Russian economy.”

Beyond energy, the sanctions widen restrictions on Russian financial institutions and crypto exchanges. EU officials said Russian entities had turned to digital assets to move money across borders, exploiting gaps in earlier restrictions. The new measures close those loopholes by extending compliance obligations. These obligations apply to cryptocurrency platforms operating within the EU.

The package also targets Russia’s so-called “shadow fleet”; a network of vessels used to transport oil outside Western price caps. More than 100 ships will be added to the blacklist, bringing the total to 558, according to Danish authorities.

EU Considers Action on Ruble-Backed Stablecoin

The European Union is also preparing to impose separate sanctions on A7A5, a ruble-backed stablecoin that has grown rapidly in recent months. The token, issued by A7 and Russia’s state-owned Promsvyazbank, is being used to bypass global financial restrictions. Both entities are already under U.S., U.K., and EU sanctions.

The planned move would prohibit EU-based individuals and firms from transacting with the token, either directly or through intermediaries. The move serves as a critical step in curbing Moscow’s growing use of digital currencies to evade restrictions.

It follows similar steps by the United States and the United Kingdom, which earlier sanctioned Kyrgyz exchanges Grinex and Meer, along with Capital Bank of Central Asia and its director Kantemir Chalbayev. All were accused of facilitating Russian financial operations linked to the war effort.

Impact on Russia and Ukraine’s Response

The expanded measures are expected to strain Russia’s energy and financial sectors, both already weakened by earlier sanctions. The inclusion of cryptocurrency restrictions marks a major shift, signaling Europe’s intent to close every channel Moscow could use to sustain its war economy.

Ukraine’s President Volodymyr Zelenskyy welcomed the decision, calling it a “very important step” in global efforts to weaken the Kremlin. 

Before the European Council meeting in Brussels, I met with António Costa. It was important to coordinate our positions.

I am grateful to the European Union for approving today the 19th package of sanctions against Russia – restrictions on the shadow oil fleet, the banking and… pic.twitter.com/uEnM0fRV9z

— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) October 23, 2025

With the latest package, the EU has reinforced its message that economic pressure will remain a central weapon in its strategy to counter Russia’s aggression. The sanctions will tighten the Russian financial noose with an aim to stop the war with Ukraine.