EU adopts 20th package of sanctions against Russia

On 23 April 2026, legal acts formalising the 20th package of European Union (“EU”) restrictive measures (sanctions) were published, including:

• Council Regulation (EU) No. 2026/506 of 23 April 2026 amending Regulation (EU) No. 833/2014 (“Regulation No. 833”);
• Council Implementing Regulation (EU) No. 2026/509 of 23 April 2026 implementing Regulation (EU) No. 269/2014 (“Regulation No. 269”); and
• Council Regulation (EU) No. 2026/511 of 23 April 2026 amending Regulation No. 269.

Among the key sectors of the economy affected by the sanctions are the energy, finance and military sectors. We summarise below the main new introductions of the 20th package.

Expanding the list of asset freezing sanctions

The list of persons and entities subject to EU asset freezing sanctions provided under Regulation No. 269 has been significantly expanded. The updated list includes 80 legal entities and 37 individuals, in particular:

• a number of companies in the Russian energy sector – PJSC “Stock Oil Company Bashneft,” PJSC Oil and Gas Company “Slavneft,” JSC Rosnefteflot, Volgaburmash JSC, JSC Ryazan Oil Refinery, LLC “Gazprom Flot,” LLC Gazprom LNG Technologies, etc.;
• Russian companies from other sectors – UCP Investment Group, LLC Soglasie Insurance Company, JSC “Promsintez,” JSC “Krasnoyarsk machine-building plant,” LLC SKB Stankostroenie, etc.;
• foreign suppliers of technological equipment and electronic products – Li Xinyang (a Chinese citizen and director of Beijing Xichao International Technology and Trade), Beijing Xichao International Technology and Trade (PRC), Yangzhou Yangjie Electronic Technology Co., Ltd. (PRC), ETS Solutions (China) Ltd. (PRC), Brightmile Ltd. (Hong Kong), EDM LLC-FZ (UAE), Turboshaft FZE (UAE), etc.;
• UAE companies involved in the transportation or trading of Russian oil – Altrum Group FZCO, Centauri Services LLC, Lumen Ship Management FZCO, Alghaf Marine DMCC, etc.;
• CJSC TengriCoin (Kyrgyzstan) – the company that operates Meer, a major platform for trading the A7A5 stablecoin;
• owners and/or chief executives of a number of Russian and foreign technological (Advanced Technologies Management JSC), metalworking (T.R.O.S. LLC), pharmaceutical (Farmirus LLC), military-industrial (Tekhnodinamika JSC, United Instrument Manufacturing Corporation JSC, Streit Group FZE) and other companies;
• Timur Shagivaleev, General Director of OEZ IPT Alabuga (JSC “Alabuga Special Economic Zone of Industrial and Production Type”);
• Mikhail Piotrovsky, General Director of the State Hermitage Museum; and
• Sergey Obryvalin, First Deputy Minister of Culture of the Russian Federation.

As a reminder, EU asset freezing sanctions have the following consequences:

• EU PersonsThe EU sanctions are binding:
  
  • within the EU territory;
  • on EU nationals regardless of their location;
  • on EU-registered legal entities and their branches and representative offices;
  • on any persons within the EU territory, regardless of their nationality; and
  • on board any aircraft or vessel under the jurisdiction of a Member State
  (collectively, “EU Persons”). are required to block (freeze) funds and economic resources owned, held or controlled by sanctioned persons; and
• EU Persons are prohibited from directly or indirectly making funds and economic resources available to or for the benefit of sanctioned persons.

The abovementioned restrictive measures also apply to legal entities that are directly or indirectly owned (50% or more) or controlled by sanctioned persons.

New grounds for unblocking assets of sanctioned persons

New grounds on which competent authorities of EU Member States may authorise the unblocking of frozen assets of sanctioned persons have been added:

• if the frozen funds or economic resources are necessary for (i) the needs of state-funded intermediate organisations for the foreign cultural policy of the EU Member States in Russia, or (ii) EU Member States’ historical responsibility programmes or for the support of EU Member States’ ethnic minorities in Russia; and
• if the frozen funds or economic resources are subject to an arbitral decision rendered after the date of imposition of EU sanctions against the person who initiated the relevant arbitration. Such authorisation may be granted insofar as the arbitral decision concerns the award of costs of arbitral proceedings, and the arbitral decision awards such costs to a party that is neither listed, nor owned or controlled by a listed person, and is not a Russian national or a legal entity established in Russia.

Restrictions against Russian financial institutions

As we previously reported, as part of the 18th EU sanctions package, the prohibition established by Article 5h of Regulation No. 833 was significantly expanded: now, a complete prohibition on any transactions with entities listed in Annex XIV and their Russian subsidiaries applies.

From 14 May 2026, amendments to Annex XIV will enter into force, which will include 20 new Russian banks, including BCS Bank, Russian Standard Bank, WB Bank, Ural Bank for Reconstruction and Development, Metallinvestbank, Fora-Bank, Avers Bank, Avangard Bank, and others.

At the same time, the list of derogations from this prohibition has been expanded. The prohibition now does not apply to transactions:

• necessary for the reception of payments due from sanctioned financial institutions pursuant to contracts and obligations performed before 24 April 2026;
• necessary for the payment of reasonable professional fees or the reimbursement of incurred expenses associated with the provision of legal services; and
• necessary for the needs of state-funded intermediate organisations for the foreign cultural policy of the EU Member States in Russia.

Restrictions against foreign financial institutions

The EU has also expanded the list of foreign financial institutions with which EU Persons are prohibited from engaging in any transactions: Yelo Bank (Azerbaijan) was added to Annex XLIV to Regulation No. 833, and Joint Development Bank (Laos), Keremet Bank OJSC (Kyrgyzstan), and Capital Bank Central Asia OJSC (Kyrgyzstan) were added to Annex XLV.

Furthermore, legal entities, organisations, and bodies established outside the EU that offer crypto-asset or payment services enabling the performance of international transactions, including through payments from accounts in countries other than Russia, through netting, through set-off, through reconciliation or through settlement, that frustrate the purpose of the objectives of the EU sanctions prohibitions, can now be included in Annex XLV. On such ground, four companies have been included in this Annex: Arneis, Asia Import Group, Global Payment Agent (GPAgent), and the Platejka service.

The prohibition on transactions with the abovementioned companies will enter into force on 14 May 2026.

At the same time, the EU lifted restrictions on the following banks, removing them from Annex XLV: Dushanbe City Bank CJSC (Tajikistan), Spitamen Bank CJSC (Tajikistan), Commerzbank of Tajikistan OJSC (Tajikistan), Heihe Rural Commercial Bank Co. Ltd. (PRC), and Heilongjiang Suifenhe Rural Commercial Bank Co. Ltd. (PRC).

Restrictions against the cryptocurrency sector

Article 5bb has been added to Regulation No. 833, prohibiting EU persons from directly or indirectly engaging in any transactions with legal entities, organisations, or bodies established in Russia that provide crypto-asset services or enable the exchange or transfer of crypto-assets, from 24 May 2026.

The prohibition does not apply to transactions:

• that are necessary for the functioning of diplomatic and consular representations of the EU and of the EU Member States or of EU partner countries in Russia, including delegations, embassies and missions, or international organisations in Russia enjoying immunities in accordance with international law; or
• made by nationals of an EU Member State who are residents of Russia and were so before 24 February 2022.

Furthermore, the competent authorities of the EU Member States may authorise transactions prohibited by Article 5bb that are strictly necessary for divestment from Russia or for the winding-down of business activities in Russia.

The 20th sanctions package has also expanded the list of sanctioned cryptoassets: along with the A7A5 stablecoin, which was restricted in November 2025, the digital rouble and RUBx stablecoin were added to Annex LIII to Regulation No. 833. EU Persons are prohibited from directly or indirectly participating in any transactions involving such cryptoassets, or from providing any support for their development. Restrictions on the digital rouble and RUBx will enter into force on 24 May 2026.

Expanding the list of sanctioned vessels and ports

As we wrote earlier, under the 14th sanctions package, Article 3s was added to Regulation No. 833, which introduces restrictions on the vessels listed in Annex XLII.

Under the 20th EU sanctions package, this list was significantly expanded – it was supplemented by 46 more vessels, and currently contains more than 600 vessels.
We remind you that EU Persons are prohibited from:

• providing such vessels with access to ports, anchorage zones and locks in the EU;
• importing into the EU, purchasing or transferring such vessels;
• selling, supplying, chartering or exporting such vessels;
• operating or crewing such a vessel;
• providing flag registration for the benefit of such vessels;
• providing financing and financial assistance, including insurance, as well as brokering services, including ship brokering, for such vessels;
• providing technical assistance and other services including bunkering, ship supply services, crew changes services, cargo loading and discharge services, fendering and tug services to the benefit of such vessels; and
• engaging in ship-to-ship transfers or any other transfer of cargo with, or procuring any services from, such vessels.

Restrictions against LNG

From 1 January 2027, EU Persons are prohibited from directly or indirectly providing LNG terminal services to any Russian persons, or to any legal entities registered in the EU that are controlled by or more than 50% owned by Russian persons. These services include, inter alia, LNG offloading, storage, sending out, berthing, regassification, backhaul liquefaction and bunkering.

It is also prohibited to directly or indirectly provide technical assistance, brokerage services, financing, or financial assistance related to ice-breaker vessels and LNG tankers, if such vessels are registered under the Russian flag, are certified by the Russian Maritime Register of Shipping, are owned or managed by any Russian natural or legal person, entity or body, are operating in Russia, or are for use in Russia. This prohibition does not apply in the case of a vessel in need of assistance seeking a place of refuge, of an emergency port call for reasons of maritime safety, or for saving life at sea or for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.

Prohibition on the sale of tankers to Russian persons

Article 3q was added to Regulation No. 833 that prohibits EU persons from selling or otherwise transferring ownership, directly or indirectly, of tanker vessels for the transport of crude oil or petroleum products to any person in Russia or for use in Russia.

In the event of a sale or other transaction resulting in the transfer of ownership of such tankers to persons from any third country outside the EU, sellers are required to:

• take appropriate steps to identify and assess the risks of retransfer to Russia or for use in Russia, and ensure that those risk assessments are documented and kept up-to-date;
• implement appropriate policies, controls and procedures to mitigate and manage effectively the risks of retransfer to Russia or for use in Russia; and
• immediately notify the competent authorities of the relevant EU Member State of the transaction. The notification shall contain, among other things, information on the seller and purchaser, including the shareholding and management structure, their incorporation documents, the IMO ship identification number of the vessel, etc.

Furthermore, the relevant contracts must contain:

• provisions prohibiting the purchaser from any further resale or transfer of the vessel to any Russian person or for use in Russia; and
• provisions requiring the purchaser to include in the contract a similar prohibition on the resale or transfer of the tanker to Russian persons or for use in Russia for any subsequent resale or transfer of the tanker.

Restrictions on exports to Kyrgyzstan

Back in June 2023, the EU added Article 12f to Regulation No. 833, which contains a sanctions anti circumvention mechanism. This mechanism allows for restrictions on the export of specific goods to individual countries to prevent their subsequent re-export to Russia.

As part of the 20th sanctions package, the EU applied this mechanism for the first time, imposing restrictions against Kyrgyzstan. EU Persons are now prohibited from directly or indirectly selling, supplying, transferring, or exporting the following goods to any natural or legal person, organisation, or body in Kyrgyzstan:

• machining centres for working metal; and
• machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.

The introduction of this restriction was prompted by an abnormal increase in trade statistics: according to the EU Council, exports of electronics and sensitive equipment from the EU to Kyrgyzstan increased by approximately 800% compared to previous years, while shipments from Kyrgyzstan to Russia increased by 1,200%.

New grounds for imposing sectoral sanctions

Regulation No. 833 has been supplemented with new grounds for imposing a restriction in the form of a transaction ban. Articles 5ai and 5aj establish a prohibition on EU Persons engaging, directly or indirectly, in any transactions with legal persons, entities or bodies that:

• benefited from decisions taken pursuant to Decree of the President of the Russian Federation No. 302 of 25 April 2023, pursuant to Federal Law No. 470-FZ of 4 August 2023, or pursuant to related or equivalent Russian legislation (“Decisions”); and
• seek, or cooperate in, the enforcement outside the EU of (i) Decisions or (ii) judgments of third-country courts satisfying claims in connection with any contract or transaction the performance of which has been affected by EU sanctions, or with persons that own or control them (except for lawyers and members of the judiciary).

The abovementioned persons will be included in Annexes LIV and LV, respectively. These Annexes currently do not contain any inclusions.

The prohibition will not apply to transactions that are necessary for:

• the purchase, import or transport of pharmaceutical, medical or agricultural and food products, including wheat and fertilisers, the purchase, import and transport of which is permitted by EU sanctions;
• ensuring access to judicial, administrative or arbitral proceedings in EU Member States, as well as for the recognition or enforcement of a judgment or arbitration awards rendered in EU Member States, provided that such transactions are consistent with the objectives of the EU sanctions; and
• recovery of damages in accordance with Articles 11a and 11b of Regulation No. 833 or Article 11a of Regulation No. 269.

Another ground for the introduction of this prohibition is established by the new Article 5sa of Regulation No. 833, which prohibits EU Persons from engaging in any transactions with persons that, in accordance with Decree of the President of the Russian Federation No. 122 of 15 February 2024, Decree of the Government of the Russian Federation No. 1767 of 18 October 2021, or in accordance with other Russian legislation, or in accordance with an injunction, order, relief, judgment or other decision of a Russian court, have used or are using intellectual property rights or trade secrets owned or controlled by an EU Person, without the consent of the right holder.

These persons will be included in Annex LVI, which currently does not contain any inclusions either.

Expansion of the “no claims clause” and grounds for recovery of damages

Regulations No. 269 and No. 833 contain Article 11 (the so-called “no claims clause”), which prohibits the satisfaction of claims arising in connection with any contract or transaction the performance of which has been affected, directly or indirectly, in whole or in part, by imposed pursuant to such Regulations.

Under the 20th sanctions package, this clause and related provisions have been expanded:

• previously, the prohibition contained in Regulation No. 269 applied to claims of (i) sanctioned persons and (ii) persons acting through or on behalf of sanctioned persons. It now also applies to claims by natural persons and legal entities from non-EU countries (except for EU partner countriesThe USA, Japan, the UK, South Korea, Australia, Canada, New Zealand, Norway, Switzerland, Liechtenstein and Iceland) that make available funds or economic resources, the making available of which is prohibited under this Regulation, to the persons referred to in points (i) and (ii) above; and
• previously, the prohibition contained in Regulation No. 833 applied to claims of (i) sanctioned persons and non-EU legal persons owned directly or indirectly by them by more than 50%, (ii) any other Russian persons, and (iii) persons acting through or on behalf of the abovementioned persons. The prohibition now also applies to claims by natural persons and legal entities from third countries (other than Russia), with the exception of EU partner countries, that sell, supply, transfer or export goods, technology and services prohibited by EU sanctions for use in Russia or to the persons referred to in points (i) to (iii) above.

In view of such amendments, Article 11a of both Regulations has also been expanded, which gives EU Persons the right to recover in the competent courts of EU Member States any damages (including legal costs) incurred by those persons as a result of claims brought against them in third country courts in connection with any agreement or transaction whose performance was affected by measures introduced by Regulations (“Claims”).

EU Persons are now also entitled to recover in the courts of EU Member States any damages incurred as a result of injunctions, orders, reliefs, judgments or other judicial or administrative decisions rendered in third countries (other than Russia), which seek to enforce judgments upholding the Claims, provided that the person concerned does not have effective access to remedies in the relevant jurisdiction. Damages may be recovered from persons, entities or bodies that seek or cooperate in the enforcement of such judgments in a third country (other than Russia), or or from persons, entities or bodies that own or control those entities or bodies, except for their lawyers and members of the judiciary.

Furthermore, Article 11ca has been added to Regulation No. 833, which entitles EU Persons to obtain an anti suit injunction from the competent court of an EU Member State if a person referred to in points (i) to (iii) above has initiated proceedings in a Russian court in connection with a contract or transaction the performance of which was affected by EU sanctions, in breach of an exclusive jurisdiction or arbitration clause (under Articles 248.1 or 248.2 of the Arbitrazh Procedure Code of the Russian Federation or equivalent Russian legislation).

Other EU sanctions

The EU also introduced a number of other sectoral sanctions, amending Regulation No. 833 accordingly, in particular:

• from 25 May 2026, EU Persons are prohibited from directly or indirectly providing managed security services to the Russian Government, as well as to Russian legal persons, entities or bodies;
• 60 new legal entities from Russia, the PRC, Hong Kong, Thailand, Turkey and the UAE have been added to  Annex IVThis Annex lists natural or legal persons, entities or bodies which are military end-users, form part of Russia’s military and industrial complex or which have commercial or other links with or which otherwise support Russia’s defence and security sector.. EU Persons are prohibited from directly or indirectly selling, supplying, transferring or exporting to such entities goods and technology, including dual-use goods, specified in Annex VIIThis Annex lists goods and technology which might contribute to Russia’s military and technological enhancement, or the development of the defence and security sector.;
• new export restrictions are established (in particular, the sale to Russian persons or for use in Russia of certain chemicals, rubber and articles of vulcanised rubber, articles of steel, tools for metal production and industrial tractors is prohibited), and the list of goods prohibited from transit through Russia has been expanded; and
• the prohibition on accepting financing and financial assistance from the Russian Government, Russian state-owned companies, and related entities now extends to European public and private research institutions, universities, higher education establishments, research and technology organisations, etc.