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Europe increases pressure: 19th round of sanctions targets Russia's energy and financial system – detailed explanation
24.10.2025.

The European Union (EU) member states have agreed to strengthen restrictive measures against the aggressor state Russia and its supporter Belarus, adopting the 19th sanctions package on October 23, 2025. The new round of sanctions will significantly affect Russia's energy sector, imposing a ban on the import of liquefied natural gas, the financial sector, restricting the issuance of payment instruments, and the shadow fleet, including 116 new shadow fleet vessels on the sanctions list.

Key elements of the 19th round of sanctions

The list of goods and technologies subject to export bans has been expanded to include goods that can be used to develop Russia's military capabilities.

Goods that, due to their physical and chemical properties, can be used to develop Russia's military and defense capabilities, as well as be used in hostilities in Ukraine, include, for example, military rangefinders or various chemical alloys and metals used in the production of electronic devices, the export of which to Russia is prohibited.

Ban on the import of liquefied natural gas (LNG)

In order to negatively impact one of Russia's most profitable sectors, namely restricting the flow of electricity resources, the new round of sanctions imposes a ban on the purchase, import, and transportation of liquefied natural gas of Russian origin (or exported from Russia) from January 1, 2027.

Stricter restrictions on cashless transactions

Similar to the SPFS system created by the Central Bank of Russia, which was created in response to Russia's exclusion from the SWIFT network, the 19th round of sanctions prohibits transactions with certain persons using Mir (the Russian national payment card system) and SBP (Fast Payment System), which were created by the Central Bank of Russia or another legal entity registered in Russia.

Measures to restrict crypto asset transactions

Recognizing the risks that may arise from the use of crypto-assets to circumvent sanctions and finance war, EU Member States have decided to add to the list of transaction prohibitions those third-country financial institutions that provide services related to crypto-assets.

Prohibition on issuing payment instruments

The new round of sanctions prohibits the EU from issuing payment instruments to Russian nationals or natural persons residing in Russia, or to any legal person, entity or body established in Russia. A payment instrument is understood to be any personalised device and/or set of procedures agreed upon between a payment service user and a payment service provider and used to initiate a payment order.

Potential, the development of which can contribute to Russia's military capabilities – SEZ ban

Special economic zones, or SEZs, attract new companies with favorable tax rates, customs exemptions and other advantages for legal entities. Several such SEZs are located in different regions of Russia. The economic activities that take place in them can serve Russia's technological and industrial development, for example, unmanned aerial vehicles, combat weapons, military vehicles and other equipment that can be used for military purposes are produced under legally and economically favorable conditions. Recognizing the potential risks that attracting new companies to SEZs can pose, thereby strengthening Russia's military capabilities, sanctions prohibit any kind of involvement in the ownership structures of companies located in certain Russian SEZs, including establishing joint ventures, as well as concluding any kind of contracts with such companies.

Prohibition of the provision of artificial intelligence, quantum computing and commercial space services

In view of the rapid development of technologies, especially in the field of information technology, new restrictions have been imposed on the provision of services to persons registered in Russia in the following areas: artificial intelligence, commercial space services and quantum computing. The provision of such services can be used in the interests of Russia to develop its skills and technological solutions in geological exploration and the creation of precise geographical maps.

Russia as an undesirable tourist destination

In order to reduce the number of non-essential trips by EU citizens to Russia, the provision of tourism services to persons wishing to visit Russia on tourist trips is being restricted. Given that EU Member States are undesirable for Russia, citizens of Member States risk their freedom, which may be restricted under Russian jurisdiction. In such cases, EU Member States have limited diplomatic and consular possibilities to release their citizens and bring them to EU territory.

The provision of services requires authorization from the competent authority.

For the provision of such services (which are not prohibited) to Russian authorities, it will be mandatory to obtain a permit from the competent authority of the Member State. Before providing a specific service, the service provider will need to justify the need for this service. If the competent authority of the Member State decides to grant a permit after a thorough assessment of this justification, a permit will be issued on the basis of which the specific service may be provided.

Prohibition of reinsurance for Russian aircraft and ships

To reduce financial gain from selling old, unmaintained and unused aircraft and ships owned by Russia, it is prohibited to reinsure them for five years from the date of sale.

Extended deadline for transactions to ensure the closure of companies owned by EU nationals in Russia

Legal and natural persons of EU Member States with registered companies in Russia are being granted an extension of the deadline of 31 December 2026 for transactions related to the disposal or liquidation of these companies in Russia. The EU Member States reiterate that Russia is a country outside the rule of law, therefore, no reaction from Russia is foreseeable and decisions have been issued in relation to companies whose owners are from “undesirable countries”, including the European Union. This may lead to the risk of freezing the assets of such companies in Russia and other adverse actions against such companies. In particular, the EU calls for careful consideration and assessment of all possible risks for citizens of Member States who are considering establishing companies or joint ventures in Russia.

Stricter travel restrictions for Russian diplomats

A prior notification requirement is introduced for Russian diplomats and consular officials entering the Schengen area and Member States other than their Member States of accreditation. Member States will now have the right to prohibit Russian diplomats from entering their territory on the basis of entry documents issued by another country.

List of partner countries for oil imports expanded

The list of partner countries from which proof of origin is not required for imports of petroleum products, in accordance with Article 3ma of Regulation (EU) 833/2014 and Annex LI thereto, has been expanded to include Australia, Japan and New Zealand, in order to promote cooperation and energy security in Europe.

EU sanctions lists have been supplemented with:

  • 45 legal entities that support the Russian defense and security sector, including legal entities from third countries;
  • eight credit institutions with which it is prohibited to engage in any transactions;
  • 116 “shadow fleet” ships or vessels, four ships removed from the list;
  • four banks outside Russia that use the SPFS of the Central Bank of Russia, established by the Central Bank of Russia;
  • six financial institutions that provide crypto-asset services;
  • 11 special economic zones (SEZs) , in which it is not permitted to be a participant, establish a new joint venture, entity or structure, as well as conclude contracts for the purchase of goods or services with a legal entity registered in one of the listed SEZs;
  • one cryptoasset.

Targeted financial sanctions set new definitions for the terms: “owned” and “controlled”

The definition of the above-mentioned terms will strengthen legal certainty and uniform practice in the EU Member States. Until now, the EU institutions have explained these terms in the form of guidelines. Now the terms have been incorporated into the regulations and become legally binding. It is important to emphasize that the definitions incorporated in the regulation correspond to the definitions previously explained by the EU institutions, therefore the practice of applying the terms will remain unchanged.

New definitions have been established in Article 1 of Regulation (EU) 833/2014 for the following terms:

  • “crypto -asset
  • “payment services
  • The reference to “related parties” in Article 2 of Regulation (EU) 269/2014 has been removed .

Annex I to Regulation (EU) 269/2014 may further include persons involved in criminal offences against Ukrainian children and their assimilation in the interests of Russia, including deportation, forcible transfer and

Impact of the 19th round of sanctions on Belarus

In order to avoid the risk of possible circumvention of sanctions through Belarus, the elements of the 19th round of sanctions are also applicable to Belarus. Almost all of the above-mentioned prohibitions or restrictions, for example, in connection with the addition of new goods that can be used for the development of the military sector to the export ban list, restrictions on the provision of artificial intelligence services, restrictions on transactions using crypto assets, etc. Additionally, restrictions have been imposed related to the provision of computer software development, installation and maintenance services.

More information about the new round of sanctions is available in the Official Journal of the EU .

To help entrepreneurs develop and implement a set of measures, or internal control system (ICS), to mitigate and manage sanctions risks in transactions with merchants in countries with increased sanctions risk, the FID has published guidelines “Managing Sanctions Risks in Transactions with Increased Risk Countries”.

Since April 2024, the FID has been the national competent authority for sanctions enforcement issues in Latvia.

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Key Sanctions Developments in Q1 2026
SUMMARY EU is strengthening sanctions against Russia, including banning the import of petroleum products produced from Russian crude oil and approving a gradual phase-out of Russian natural gas.Krievijas dabasgāzes.EU is expanding sanctions lists in response to human rights violations and Russia’s destabilising activities.The Court of Justice of the European Union confirms broader application of sanctions to companies and prohibits sanctioned persons from participating in shareholders’ meetings.In Latvia, 24 new criminal proceedings have been initiated for violations of international sanctions.Latvian courts completed adjudication in 11 sanctions-related cases, with several resulting in fines and imprisonment.The Customs Board of the State Revenue Service initiated 29 administrative offence proceedings.Guidance on the application of sanctions has been updated. Strengthening of SanctionsOn 21 January, a ban entered into force in the European Union (EU) on the import of petroleum products manufactured from Russian crude oil.¹ Although the EU had already prohibited imports of Russian crude oil (except via pipelines), it had until now remained permissible to import petroleum products manufactured in third countries using Russian crude oil.On 26 January, a regulation was adopted approving the EU’s gradual phase-out of Russian natural gas.² The import ban entered into force on 18 March, while transitional periods for the fulfilment of existing contracts will remain in place until the end of 2027. Specific exemptions are also предусмотрены for landlocked countries.Although the 20th sanctions package was adopted on 23 April, during the first months of the year the EU expanded sanctions regimes targeting Russia’s “hybrid warfare”³ activities and human rights violations. On 23 February, the EU imposed sanctions on eight Russian individuals for serious human rights abuses and acts of repression. In addition, the sanctions list related to Russia’s destabilising activities was expanded by 10 individuals, primarily authors and distributors of Russian propaganda.Key Judgments of the Court of Justice of the European UnionOn 26 March, the Court of Justice of the European Union dismissed appeals submitted by five sanctioned individuals — Dmitry Alexandrovich Pumpyanskiy, Tigran Khudaverdyan, Viktor Filippovich Rashnikov, Dmitry Arkadievich Mazepin, and German Khan — who sought the annulment of sanctions imposed against them.⁵ The joined cases are particularly significant because the Court interpreted the criterion of an “influential businessperson” for inclusion on sanctions lists. The Court confirmed that a person may justifiably be sanctioned even without direct links to the Russian government if the individual is economically influential or operates in a sector constituting a substantial source of revenue for the Russian government.Additional important sanctions-related judgments were delivered on 12 March. The Court confirmed⁶ that the assets of a company owned or controlled by a sanctioned person may also be frozen even if the company itself is not listed under sanctions, provided that at least 50% of its shares are owned by a sanctioned individual.In another judgment,⁷ the Court ruled that persons included on sanctions lists are not permitted to participate in shareholders’ meetings or exercise voting rights therein.FIU TopicalitiesDuring the first quarter, the Financial Intelligence Unit of Latvia received 310 suspicious transaction reports indicating possible sanctions violations or attempted violations. Most reports concerned the possible shipment of prohibited goods to Russia through third countries, the provision of services to Russian companies, accounts held in sanctioned banks, and the transportation of cash to Russia. A total of 51 analytical reports relating to possible sanctions violations were forwarded to law enforcement and other authorities.On 20 February, the FIU adopted a new General Authorisation, expanding the categories of payments for which sanctioned persons no longer require separate FIU permission.The FIU also repeatedly updated the “Frequently Asked Questions” section of its website regarding sanctions implementation, clarifying existing guidance and adding new questions. New explanations were provided, for example, regarding the provision of services to Russian and Belarusian companies, the obligation to comply with EU sanctions in third countries, the holding of shares in Russia or Belarus, framework agreements, the transit of goods through the EU, and the FIU General Authorisation.By the end of the first quarter of 2026, the following assets owned or controlled by sanctioned persons had been frozen in Latvian financial institutions and state registers: funds — EUR 152.2 millionreal estate properties — 103vehicles — 66agricultural machinery — 11vessel — 1livestock herd — 1trademarks — 12 A list of sanctioned persons with frozen assets in Latvia is available here.Criminal Proceedings Statistics in LatviaDuring the first quarter of 2026:24 new criminal proceedings were initiated for violations of international sanctions;criminal prosecution was commenced in six criminal proceedings;charges were brought against seven natural persons;five criminal proceedings were referred to court;two criminal proceedings were completed through prosecutorial penalty orders.In one of the proceedings concluded through a prosecutorial penalty order, a natural person was fined EUR 9,360, while a legal entity was ordered to pay more than EUR 17,100. The case concerned an attempt to export sanctioned goods — primer products valued at EUR 67,800 — to Russia using falsified documents and falsely declaring Kazakhstan as the final destination. The goods had already been confiscated, sold, and the proceeds transferred to the state budget.In another criminal proceeding concluded through a prosecutorial penalty order, a Russian citizen holding a permanent residence permit in Latvia was placed under probation supervision for three years. In this case, the individual knowingly violated EU sanctions against the Russian Federation for financial gain by remotely working as a programmer (1C developer) for a Russia-registered company and thereby systematically providing prohibited IT consultancy services. Between 2022 and 2025, the individual received remuneration amounting to 5.89 million Russian roubles (approximately EUR 64,200). Part of this remuneration — nearly EUR 10,000 — was received through an account held with a sanctioned bank, thereby directly making funds available to a sanctioned legal entity.In Latvian CourtsDuring the first months of the year, Latvian courts completed adjudication in 11 criminal cases related to sanctions violations.In one case, a judgment entered into force imposing fines exceeding EUR 26,500 on two individuals. In two other cases, criminal proceedings were terminated after the court concluded that no criminal offence had occurred.A further six individuals were convicted in cases where judgments had not yet entered into force by the end of the quarter. In two cases, imprisonment sentences of 11 years⁸ and three years respectively were imposed. The largest fine imposed on a natural person amounted to EUR 31,200, while the largest monetary recovery ordered against a legal entity amounted to EUR 39,000.Customs Board TopicalitiesThe Customs Administration of the State Revenue Service of Latvia initiated 29 administrative offence proceedings related to sanctions violations.Overall, during the reporting period, 187 consignments were denied border crossing due to sanctions violations or suspicions of sanctions circumvention. Most rejected consignments concerned exports. The most frequently blocked exports included spare parts for various devices and machinery, electrical equipment and components, and vehicle spare parts. Imports from Russia and Belarus involving construction structures, timber, iron compounds, and furniture were also denied.In an additional 43 cases, attempts were identified to export cash denominated in official EU Member State currencies from the EU in violation of sanctions regulations. Postal controls prevented 31 violations, while 42 cases involved individuals attempting to transport sanctioned goods across the border.Example of a Sanctions ViolationOn 23 January 2026, at the Pāternieki Customs Control Point, customs officials identified an attempt to transport engines to Belarus. Although the declared recipient was located in Kazakhstan, the engines in question were also prohibited from transit through Russia and Belarus. The total value of the goods amounted to EUR 102,000. Criminal proceedings were initiated in connection with the case. Photos by Customs Board About the Quarterly PublicationThe Financial Intelligence Unit of Latvia publishes quarterly summaries of key sanctions-related developments and statistics in order to provide the public with regular and transparent information regarding sanctions updates and their enforcement in Latvia. The publication is based on information available to the FIU, as well as data provided by the Prosecutor General’s Office, the Court Administration, and the Customs Administration of the State Revenue Service. 1The prohibition is set out in Article 3m of Council of the European Union Council Regulation (EU) No 833/2014: https://eur-lex.europa.eu/legal-content/EN/AUTO/?uri=celex:32025R1494.  2https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202600261. 3https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02024R2642-20260316. 4https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02024R1485-20260223. 5Judgment in joined cases C-696/23 P, C-704/23 P, C-711/23 P, C-35/24 P and C-111/24 P: https://eur-lex.europa.eu/legal-content/LV/TXT/HTML/?uri=CELEX:62023CJ0696. 6 Judgment in case C-84/24: https://eur-lex.europa.eu/legal-content/LV/TXT/HTML/?uri=CELEX:62024CJ0084. 7 Judgment in case C‑465/24: https://eur-lex.europa.eu/legal-content/LV/TXT/HTML/?uri=CELEX:62024CJ0465. 8 In the case, violation of sanctions was one of the criminal offences with which the person had been charged. The term of imprisonment was reduced to 9 years, 8 months and 29 days, applying Section 52 of the Criminal Law.