Source: Market Information

(Source: Shipping Broker)

On October 22 local time, the EU passed the 19th round of sanctions against Russia, for the first time targeting Russian liquefied natural gas (LNG) exports and placing over 100 ships on the sanctions list.

For this, President of the European Commission von der Leyen emphasized on social media, "We are continuously pressuring the aggressor. This is the first time we have targeted the core sector of Russia's war economy, its natural gas."

It is understood that this round of sanctions follows the recent steps taken by the US and UK to impose restrictions on Russian oil companies, vessels, and export terminals. The core measures of this sanction package consist of three parts:

First, a ban on importing Russian LNG - short-term contracts must be terminated within six months, and long-term contracts will take effect from January 2027;

Second, tighten transaction restrictions on Rosneft and Gazprom Neft, the state-owned energy giants of Russia;

Third, sanction third-country companies, including two Chinese refineries and a petroleum trader accused of purchasing large quantities of Russian crude oil.

High Representative of the EU for Foreign Affairs and Security Policy Kallas pointed out that it is becoming increasingly difficult for Russia to fund its war, and every cut-off fund means a weakening of its war machine, and called the 19th round of sanctions "not the last round," implying more sanctions measures will follow in the future.

In the shipping sector, the EU added 117 new sanctioned vessels, increasing the total number of banned vessels to 557, involving port access, insurance, and maritime service restrictions. These "shadow fleets" are accused of helping Russia bypass the oil price cap mechanism, transporting military equipment, and stolen Ukrainian grain.

Also named were Litasco Middle East DMCC of the UAE (a company under Lukoil), which is accused of being a key enabler of the "shadow fleet." In addition, the EU also sanctioned maritime agencies that provided false ship registration for these vessels, and prohibited providing reinsurance for the shadow fleet vessels, further limiting their operational capabilities.

At the same time, the new round of sanctions also affected the largest container terminal operator in Russia's Far East and a major shipbuilding company that serves the Russian shipping company Sovcomflot. In addition to the energy and shipping sectors, this round of sanctions also involves Russian banks, cryptocurrency trading platforms, and several Chinese entities. With the US and UK having previously imposed new sanctions on Russian oil and gas companies, the EU's latest action means that the global energy shipping chain is facing a new "freezing period."

Original: https://www.toutiao.com/article/7564955602436031017/

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