Phoenix Compliance Essentials #7
Today’s Focus: the EU’s 17th package of targeted financial sanctions against Russia
New measures and the shadow fleet: an update on an unprecedented initiative.
– What are targeted financial sanctions?
They are intended to restrict access to economic resources for individuals or entities that pose a threat to international peace or security. Targeted financial sanctions involve the freezing of assets and the prohibition of making funds available. They serve as a strategic tool of pressure and have been widely used by the European Union, particularly in the context of the conflict in Ukraine.
– The 17th package of sanctions against Russia was adopted on 20 May 2025.
- Objective: to further reduce Russia’s ability to finance the war in Ukraine by targeting two key levers: its energy revenues and its access to sensitive military technologies.
- A key focus of this package of measures is the “shadow fleet”. This opaque network of vessels, used to bypass sanctions, is now under increased scrutiny by the European Union.
- Key measures introduced:
* An additional 189 vessels identified as part of the shadow fleet are now banned from accessing EU ports and are prohibited from receiving any maritime or financial services. This brings the total number of sanctioned vessels to 342.
* An additional 31 companies have been targeted for their direct or indirect support of Russia’s military-industrial complex, including 13 based outside Russia (Turkey, the United Arab Emirates, Serbia, Vietnam and Uzbekistan).
* 75 new listings on the sanctions list: 17 individuals and 58 entities involved in activities undermining Ukraine’s territorial integrity.
- Obligations of regulated entities in the Principality:
* Subscribe to the National Asset Freeze List newsletter to stay informed of updates.
* Freeze the funds and economic resources of designated individuals or entities.
* Prevent any circumvention of sanctions measures.
* Where a designated person or entity is identified, report the suspicion to the AMSF and notify the Budget and Treasury Department of the measures taken.
* Implement ongoing screening controls across the entire customer database.
- For further information, please refer to the updated AMSF Guide on Targeted Financial Sanctions: https://lnkd.in/dhn4Z37e
