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EU adopts new Russia sanctions targeting China, shadow fleet
Published by Jessica Weisman-Pitts
Posted on December 17, 2024
4 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 17, 2024
4 min readLast updated: January 28, 2026
By Julia Payne
BRUSSELS (Reuters) -The European Union has adopted a 15th package of sanctions against Russia over its invasion of Ukraine, including tougher measures against Chinese entities and more vessels from Moscow’s so-called shadow fleet, the EU Commission said in a statement on Monday.
The new package adds 52 vessels from the shadow fleet that try to circumvent Western restrictions to move oil, arms and grains, bringing the total listed to 79.
The EU began adding ships this year in response to an increase in the number of vessels transporting cargoes that are not regulated or insured by conventional Western providers. The listing included vessels that delivered North Korean ammunition to Russia.
Of the 52 vessels sanctioned, 33 were included for transporting crude oil or petroleum products originating in or exported from Russia, taking the total number of vessels sanctioned for transporting oil to 43.
The new restrictions add 84 new individuals and entities, including seven Chinese persons and entities.
“Namely one individual and two entities facilitating the circumvention of EU sanctions, and four entities supplying sensitive drone components and microelectronic components to the Russian military,” the statement said, referring to the Chinese listings.
The Chinese additions will be the first fully-fledged sanctions on the country which include a travel ban and asset freeze.
“The step to fully-fledged sanctions sends an important signal to the Chinese. We take this very seriously,” an EU diplomat said.
EU sanctions chief David O’Sullivan and Ukrainian officials have pointed to China as the main route for sales of foreign technology to Russia.
CHINESE LISTINGS
Diplomats said the previous Chinese listings in Russian sanctions packages only involved export controls, rather than an overarching sanction.
In addition, the list includes senior managers in Russia’s energy sector, two senior North Korean officials as well as 20 Russian companies and entities in India, Iran, Serbia and the United Arab Emirates.
Also added to the list was EU citizen Niels Troost, the businessperson who it said controls energy trading firm Paramount Energy and Commodities DMCC.
Paramount DMCC, the EU alleges, “repeatedly traded Russian crude oil above the oil price cap after its introduction.” Troost was also included for his alleged links to Livna Shipping Ltd, which the EU said had traded crude oil above the price cap since its introduction.
A spokesperson for Troost said he will challenge the designation.
“This decision has no basis in law or fact. Neither Mr Troost nor his companies have ever breached any laws or regulations, and he has had no corporate affiliation to Livna Shipping since he sold shares in the company in 2018,” the spokesperson said.
Livna Shipping owner Michael Chang said; “Livna Shipping Ltd does not have any ongoing affiliation with Mr Troost, who has had no interest in the management or ownership of the company since he sold his shares in it on 1 October 2018. Livna Shipping Ltd charters vessels for its clients, and the company does not undertake and has never undertaken any trading activities itself.”
Paramount DMCC was sanctioned by Britain in November last year.
EU countries added financial measures to ease the burden on EU central securities depositories, such as Belgium’s Euroclear, when they handle Russia’s immobilised central bank assets.
The Group of Seven (G7) nations agreed this year to use the over $300 billion in frozen funds to back a $50 billion loan for Ukraine to help it fight Russian forces.
The Commission is preparing a 16th package of sanctions for January, which may include wider measures such as on Russian liquefied natural gas and export limits on EU companies’ subsidiaries in third countries, sources told Reuters.
(Reporting by Julia Payne in Brussels, Robert Harvey and Enes Tunagur in London, Editing by Ros Russell and Ed Osmond)
A sanction is a penalty or restriction imposed by one country or group of countries on another, often to influence behavior or punish actions.
A shadow fleet refers to a group of vessels that operate outside of regulatory frameworks, often to evade sanctions or restrictions.
Foreign currency is any currency that is not the domestic currency of a given country, used for international trade and investment.
An international financial institution is an organization that provides financial support and advice for economic development, often on a global scale.
Financial stability refers to a condition where the financial system operates effectively, maintaining confidence and preventing systemic crises.
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