The European Union on Thursday adopted its 20th package of sanctions against Russia, following the resolution of a dispute over the Druzhba oil pipeline that had led Hungary and Slovakia to veto earlier proposals. However, the most consequential element—a comprehensive prohibition on EU companies providing maritime services such as insurance, shipping, and port access to vessels carrying Russian crude oil—has been put on ice pending a consensus within the Group of Seven.
Maritime Services Ban Stalled by Coastal States
The proposed ban, championed by Sweden and Finland, aims to replace the existing G7 price cap mechanism, which allows servicing under certain conditions. Proponents argue it would raise costs for Russia's oil sector, curb the use of falsified documents, and simplify compliance for European firms. The European Commission included the measure in the sanctions package presented in early February.
But Greece and Malta quickly raised objections. Athens, home to a powerful shipowning industry, and Valletta, with its significant ship-flagging sector, fear that implementing the ban without G7 backing would harm their domestic economies, boost competition from China and India, and strengthen Russia's so-called "shadow fleet"—aging vessels used to evade Western restrictions. Because EU sanctions require unanimity among all 27 member states, ambassadors struck a compromise: the bloc will formally approve the ban but delay its enforcement until the G7 acts.
That G7 agreement, however, appears unlikely in the near term. The White House, responding to the closure of the Strait of Hormuz, has granted sanctions relief to Russian oil, a move that has angered European capitals. After letting a previous waiver expire, US Treasury Secretary Scott Bessent initially declined to renew it, only to reverse course two days later and extend it until 16 May.
Valdis Dombrovskis, the European Commissioner for the Economy, who met with Bessent before the new waiver was issued, described the policy U-turn as "difficult to understand" given elevated energy prices. According to the International Energy Agency (IEA), Russia's revenue from crude and refined products surged to $19 billion (€16 billion) in March, up from $9.7 billion (€8.2 billion) in February, helping the Kremlin offset a trend of economic stagnation that left a $60 billion (€51 billion) deficit in the first quarter of 2026—worse than projected.
Dombrovskis has argued that the EU should not wait indefinitely for the G7, a view shared by most member states. "The broader the agreement we can reach on sanctions, the more effective it is. So, from that point of view, action at the G7 level is more effective than action just at the EU level," he said during a press briefing on Tuesday. "But we should not be making ourselves dependent on this. In this case, we need to act as the EU and sustain and increase this sanctions pressure on Russia."
Ben McWilliams, an associate fellow at Bruegel, suggests the EU could proceed with the full ban if it secures support from the United Kingdom, which hosts world-leading providers of Protection and Indemnity (P&I) insurance for maritime operations. So far, the British government has remained quiet on the issue. "Clearly, that is second best to a stronger and more coherent position at the G7 level," McWilliams said, adding that the situation in the Strait of Hormuz might shift calculations. "Lower oil prices, in principle, might reopen some space for tightening sanctions on Russia from the US perspective. But US policy is inherently unpredictable."
Beyond the maritime services debate, the 20th sanctions package targets vessels from Russia's shadow fleet, regional banks, and cryptocurrency platforms. It also restricts imports of metals, chemicals, and critical minerals worth approximately €570 million. For the first time, the EU has activated its Anti-Circumvention Tool to prohibit sales of computer numerical machines and radios to Kyrgyzstan, a country long suspected of serving as a transit hub for blacklisted goods destined for Russia.
The delay on maritime services underscores the persistent tensions within the EU between maintaining robust sanctions and protecting national economic interests, particularly among coastal states. As the bloc awaits G7 action, the effectiveness of its latest measures remains uncertain.
