EU Adopts 17th Sanctions Package Against Russia: What It Means for Danish Shipyards
On 20 May 2025, the European Union will formally adopt its 17th package of sanctions against Russia, continuing its strategic pressure in response to the ongoing war in Ukraine. While the full legal text is still pending publication in the EU’s Official Journal, key details have emerged regarding the scope and direction of the new measures. Notably, this package places unprecedented emphasis on tackling sanctions circumvention and hybrid threats — and will likely have tangible effects on maritime industries, including shipyards in Denmark.
What’s in the 17th Package?
According to official sources and media reports, the latest package includes:
- Sanctions on the "shadow fleet": Nearly 200 tankers believed to be part of Russia’s shadow fleet – those being vessels used to secretly transport sanctioned oil – have been targeted. This move aims to curtail revenue from illicit oil exports and enforce compliance with the G7/EU price cap on Russian oil.
- Export controls expansion: 30 additional companies involved in supplying dual-use or military-use goods to Russia are facing trade restrictions. This list includes 13 non-Russian entities, underscoring the EU’s broader strategy to prevent third-country circumvention.
- Human rights and judicial sanctions: 75 individuals and entities have been added to the sanctions list, including those linked to Russia’s military-industrial complex and judiciary members involved in prosecuting opposition figures.
- Hybrid threat framework: A new legal framework enables sanctions against those responsible for acts such as sabotage or cyberattacks — including threats to critical infrastructure like undersea cables and pipelines.
- Chemical exports: A ban has been introduced on certain chemical components used in missile production.
Danish Shipyards: Navigating a Tighter Regulatory Sea
While these sanctions are primarily geopolitical in intent, their ripple effects will be felt across European industry - including in Denmark’s shipbuilding and maritime services sector.
With the EU now targeting vessels operating under opaque ownership and enforcement mechanisms tightening, Danish shipyards will face stricter due diligence demands in relation to vessel origin, retrofit requests, and resales. The targeting of shadow fleet tankers may also impact demand patterns in certain sub-segments of shipbuilding, such as repair and maintenance for older, reflagged oil tankers.
Moreover, increased scrutiny of dual-use technologies and infrastructure-related services could affect Danish suppliers involved in outfitting or refurbishing vessels with advanced navigation, telecommunications, or pipeline-handling equipment.
As the EU’s regulatory net widens, Danish maritime stakeholders must remain alert - not just to legal compliance risks, but also to shifting commercial opportunities in a sector increasingly shaped by geopolitics.
Current Reporting Requirements for the Sale of Oil Tankers (as of 19 December 2023):
With the 12th Package of 18 December 2023, all sales or transfers of oil tankers to non-EU countries must be reported to the Danish Maritime Authority. Sales to Russian entities or for use in Russia are strictly prohibited and require prior approval if there's a risk of such use. Notifications must include buyer and seller identities and vessel details; further documentation may be requested.
Companies are responsible for compliance and are advised to include re-export bans in contracts.
Future tightening may involve stricter control and documentation requirements for sales to “high-risk” third countries, possible expansion of the sanctions list, more detailed requirements regarding end-use, enhanced scrutiny of high-risk sales, and a strengthened cooperation among EU member states on enforcement and oversight.
