The European Union has slapped sanctions linked to Russia’s war with Ukraine on well-connected Iranian oil trader Hossein Shamkhani. According to a report by Bloomberg, the oil trader and two of his companies, based in Dubai, have been blacklisted in Brussels.

The penalties, a part of the EU’s 18th sanctions package, affect the financial lifelines fueling Russia’s invasion. Hossein, whose father advises Supreme Leader Ayatollah Ali Khamenei, was described by the EU as a major player in Russia’s shadow fleet, the covert network in charge of moving sanctioned oil under the radar. His companies, Admiral Group and Milavous Group Ltd, were both named in the action.

“Hossein Shamkhani is involved in an economic sector providing a substantial source of revenue to the Government of the Russian Federation,” the European Union said. This means that Brussels is challenging Iran’s role in helping move Russian crude oil and keep cash flowing into the country. It is designed to frustrate Russia’s oil revenue, which has been booming thanks to exports to China and India.

European Union cuts Russian banks, tankers, and oil prices flexibility

Hossein is a part of the crackdown, and it doesn’t stop with him. In the latest package by the European Union, there are bans on about 20 Russian banks, cutting them off from the SWIFT payment system, and slapping a full transaction ban on them. This time, the bloc went a step further, also placing permanent sanctions on Nord Stream pipelines to block any future attempt to revive them. That gas route is done for.

In a major change, the European Union also changed how it handles the price cap on Russian oil. The cap, which had sat at $60 a barrel, has now been moved to $45. The cap will be reviewed twice every year, which means that it will adapt to market conditions–an effort to keep enforcement going. This revision was first reported by Bloomberg.

The European Union also extended sanctions to over 400 tankers tied to the shadow fleet, with dozens added just in this latest wave. The EU also went after other traders and firms helping to move Russian oil through third countries. These traders operate in places like Dubai and, in some cases, are connected to companies in China, which are also now being hit with restrictions. Brussels made it clear that anyone who helps Russia will be added to the list.

On the goods side, more items were added to the list of exports banned for use in Russia’s military production. These are products the EU says could be used in weapons manufacturing or other defense-related sectors. The goal is to make sure Moscow’s war machine is starved of both money and materials. By directly hitting the Iranian trader tied to Khamenei’s inner circle, the EU is expanding the battlefield. The sanctions show how far Russia’s network stretches and how deeply Iran is entangled in Russia’s oil smuggling operation.

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