EFS Consulting
03/17/2025

Sanctions Against Russia in 2025: Between Pressure and Diplomacy

International sanctions against Russia have intensified in 2025. In this Insight, we examine the current measures taken by the EU and the USA, their economic impact and possible future developments.

The Background of the Sanctions Against Russia 

The war in Ukraine has led to far-reaching international sanctions against Russia since 2022. In addition to export and financial restrictions, these sanctions primarily target strategic sectors such as energy and high-tech. Since then, the EU has adopted numerous sanction packages to intensify economic pressure on Russia.

 

Strengthening EU Sanctions Against Russia and Belarus 

During President Biden’s term in office, the U.S. closely coordinated with the EU and ultimately imposed two major sanctions packages against Russia in January 2025. These measures were primarily targeted at the energy sector, mining, and the Russian shadow fleet. However, the course shifted when President Trump took office. Initially, he announced a tightening of sanctions to exert more pressure on Russia. Yet, shortly afterward, his administration initiated peace talks with Russia, which took place in Riyadh (Saudi Arabia).

The negotiations could signal that the U.S. may be open to gradually easing sanctions on Russia in the future—particularly in the energy sector—if Russia shows cooperation. However, legal challenges remain, especially for sanctions imposed under previous executive orders. Despite this, the U.S. administration might offer targeted sanctions relief, similar to its approach with Venezuela, while maintaining the option to reinstate sanctions if Russia fails to meet its obligations.

The 16th EU Sanctions Package 

With its 16th sanctions package, the EU has further reinforced trade and technology restrictions against Russia and Belarus.  This includes, among other things: 

  • Import ban on Russian aluminium, with certain quota regulations and transition periods. 
  • Expansion of dual-use restrictions, including for CNC software and drone control systems. 
  • Software embargo in the energy sector affecting Russian oil and gas projects. 

New Rules for the Supply of Dual-Use Goods  

In addition, the list of prohibited dual-use goods has been expanded – including certain chemicals, software for CNC machines (machine tools) and drone control systems. One important change is that dual-use goods may now generally no longer be supplied to sanctioned companies, regardless of where they are used.   

Software embargo in the energy sector  

In addition, the provision of certain software for oil and gas exploration in Russia and Belarus was prohibited.   

 

Impact of the sanctions on the Russian market  

The economic consequences for Russia are far-reaching: 

  • More difficult international trade relations, particularly due to stricter export controls. 
  • Destabilisation of industry, as supplies from abroad are further restricted. 
  • Rising inflation and unemployment as direct consequences of trade and financial sanctions. 

Future developments of the Russia sanctions: A geopolitical chess game 

It remains to be seen to what extent US policy will depart from the EU policy in the long term. While the EU continues to pursue a consistent sanctions strategy, the new US administration could focus more on geopolitical negotiations – with possible consequences for the transatlantic sanctions policy towards Russia. 

 

Conclusion: The drawn-out sanctions process against Russia 

The sanctions against Russia are part of a complex geopolitical conflict. While the EU is sticking to its consistent strategy, it remains to be seen how US policy will develop. International negotiations could play a greater role in the future – with possible adjustments on the sanctions front. 

EFS Consulting supports companies in meeting international compliance requirements in a constantly changing regulatory environment. 

 

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