EU adopts 21st package of sanctions against Russia

Commission supports the EU's eastern regions bordering Russia, Belarus and Ukraine
(Credit: Unsplash)

This article is brought to you in association with the European Commission.


Today, the European Commission welcomes the adoption by EU Member States of the 21st package of sanctions against Russia. The package further restricts Russia’s ability to fund its illegal war and to carry out attacks on Ukrainian civilians and civilian infrastructure. Russia’s economy is slowing sharply, and EU sanctions have effectively cut Russia off from the global financial system. Russia’s budget is under growing pressure, with more than two-thirds of the liquid assets of its sovereign wealth fund depleted since the start of the war.

The measures focus on the sectors with the greatest impact: energy; financial services, including crypto; trade; and the Russian military-industrial complex. In addition, Member States reached an agreement that paves the way for a ban on the entry of Russian combatants into the European Union following the adoption of necessary implementing measures and a decision by the Council.

The 21st package contains the following key elements:

ENERGY MEASURES

  • Oil price cap adjustments: The EU has decided to suspend the adaptation of the price cap agreed in the 18th sanctions package for a full year until, July 2027. This will keep strong downward pressure on Russian crude exports to ensure that Russia does not benefit from the closure of the Strait of Hormuz. There remains the possibility to review the price cap earlier in case of exceptional market developments.
  • Infrastructure ban: The EU continues to target critical infrastructure that bolsters Russia’s military and economic war machine. First, a number of Russian ports and airports are designated under the transaction ban. In addition, the ban is expanded to cover refineries that process Russian oil, with one refinery, the Kulevi refinery, listed. This listing will enter into force with a six-month delay to give the refinery time to diversify away from Russian crude oil. Following an assessment by the Commission, the Council will then decide whether it is still necessary to list the refinery.
  • Resale of liquified natural gas (LNG) tankers: The package introduces a notification obligation for LNG tanker sales to third countries. Following a Commission assessment in three months, the Council must decide whether a full ban on tanker sales to Russia should be introduced.
  • LNG transfers to third countries and purchases linked to the transfers: a temporary exemption valid for one year, subject to renewal, is introduced to ensure legal certainty. The exemption is subject to strict reporting and volume requirements.  LNG terminal services ban: The package clarifies that the LNG terminal services ban introduced in the 20th sanctions package covers not only Russian and EU operators but also non-Russian, third-country operators that are controlled by Russian companies.
  • Shadow fleet: 41 more vessels on top of the 632 already sanctioned that will be subject to a port access ban and a ban on receiving services. The criteria for vessels listings are expanded to target for the first time ships that provide services to these vessels. Five bunkering vessels that have regularly refuelled already-designated tankers are also designated.
  • Oil traders: the package broadens the list of oil traders subject to a transaction ban, given their role as intermediaries for Russian oil trade in frustration of EU sanctions.

FINANCIAL MEASURES

Today, the EU is substantially strengthening the EU sanctions framework with new financial and crypto restrictions, in particular:

  • Banking: the package expands both the list of third-country banks and the list of Russian banks subject to a transaction ban. More than 100 Russian banks in total are now subject to these bans. This measure goes beyond regular listings in that it also includes a prohibition on use of financial messaging services, creating a significant hit to Russia’s ability to move its money around to support its illegal war.
  • Crypto services: the package creates a dedicated third-country ban for crypto-asset services, which will act as a deterrent for third countries hosting crypto platforms that facilitate sanctions circumvention.
  • Crypto platforms: the package imposes a transaction ban on additional third-country crypto platforms and crypto-linked firms.
  • Russian nationals on boards of crypto services companies: the packageExtends the prohibition for Russian nationals to own, control, or serve on the boards of any company offering crypto assets services.

VISA RESTRICTIONS

  • The package introduces the basis for a comprehensive visa ban for combatants and ex-combatants of the Russian armed forces and other proxy groups that participate in the Russian war of aggression in Ukraine, confirming Member States’ political and legal commitment to tackling this threat. The Council will decide when the ban enters into force, after the necessary implementing measures are in place. The Commission will revert on the implementation preparation for the visa ban in three months.

LEGAL PROTECTION OF EU OPERATORS

  • The new package adds milestone measures for the legal protection for EU operators against abusive lawsuits that are used as retaliation for EU sanctions. The measures include the possibility for EU firms to sue their non-Russian contractual parties in the EU to recover damages. EU Courts can order injunctions to deter the enforcement in non-EU countries of unlawful Russian judgments. It requires Member States not to recognise or enforce Russian decisions linked to sanctions.

TRADE MEASURES

The package expands new export and imports restrictions and bans to further disrupt and weaken Russia’s military-industrial complex. These include:

  • New export bans and restrictions: the package includes items and technologies that will further disrupt the battlefield effort and weaken Russia’s military-industrial complex. These restrictions include certain metal powders and alloys used in Russia’s aerospace sector and for drone production, and restrictions on related technologies (e.g., jamming equipment).
  • New import bans: the package includes bans on a number of goods, including locking in diversification processes concluded in the area of metal ore imports (EU imports worth EUR 60 million in 2025, EUR 285 million pre-invasion).

ANTI-CIRCUMVENTION MEASURES

  • This package adds 51 entities to the list of entities that are part of or support Russia’s military-industrial complex or enable the circumvention of EU sanctions.This includes 24 entities established in Russia and 27 in third countries, namely 14 in China (including 4 in Hong Kong), 4 in Türkiye, 3 in Kyrgyzstan, 2 in India, 2 in Kazakhstan, and 2 in the United Arab Emirates.

LISTINGS

Today’s package contains 218 additional listings, including 48 individuals and 170 entities – the highest number since the war started.

These individuals and entities are now subject to asset freezes and the prohibition to make funds and economic resources available to them, and – in the case of individuals – to travel bans. These listings span several areas, significantly extending action against Russia’s banking sector and crypto, which has served as a driver of Russia’s economy. The designations aim to constrain Russia’s capacity to carry out strikes, notably through long-range drones, and keep up pressure on Russia’s revenue generation, by continuing to target the oil, gold, and diamond sectors.

  • Financial sector and crypto: The EU is listing 94 banks and major financial institutions, as well as an important figure in Russia’s banking establishment. The EU is adding 4 designations related to the cross-border A7 network, including its new links to Africa.
  • Russian military-industrial complex (RMIC): As part of the 56 listings targeting the RMIC, 37 are directly linked to the production and supply chain of long-range drones.
  • Russia’s shadow fleet enablers: 8 entities and 1 individual active in the shadow fleet ecosystem are designated, including companies operating on behalf of Russia’s major oil companies and, for the first time, a crewing agency providing support to the shadow fleet.
  • Energy sector:  The EU is designating 18 entities and 1 individual in the oil sector, including 3 refineries in Russia, a major Belarusian oil refinery, and a company created to sell Belarusian petroleum products within Russia.
  • Gold and diamond sectors: To target other means of revenue generation for Russia, 7 major actors in the gold sector, a leading diamond company, and several entities active in the mining and metallurgy sectors are being designated.
  • Critical infrastructure: The EU is exerting pressure on Russia’s critical infrastructure, designating a key cross-border energy supplier and a prominent figure of Russian Railways.
  • Russia’s war propaganda machine: 8 individualsspreading Russia’s war propaganda and contributing to its manipulative war narrative on Ukraine are designated.
  • Accountability for war crimes: Totargeting individuals responsible for atrocious crimes, a Major General and war criminal who has engaged in the torture, executions, and desecration of bodies of Ukrainian military personnel, including prisoners of war, is being designated.

With these additions, the number of individual listings related to actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine is now close to 3000.

BELARUS

The package mirrors trade-related provisions and certain measures aimed at protecting EU operators in the Belarus sanctions regime, as per previous practice. It extends the prohibition for Belarusian nationals to own, control, or serve on the boards of any company offering crypto assets services.

It also adds 4 Belarusian entities to the list of entities that are part of or support Belarus’s or Russia’s defence and security sector.

BACKGROUND

In response to the invasion of Ukraine, the EU and its Coalition partners have adopted an impressive range of sanctions on Russia, making it the most sanctioned country in the world. The continued and sustained application of sanctions is working. Each new package increases the EU’s pressure on Russia to leave the battlefield and come to the negotiating table.

Sanctions are inflicting significant economic damage to Russia, forcing it to restructure its economy around military production and fundamentally reshaping its geo-economic landscape. Russia’s economic capabilities have been impaired, constraining its ability to fund the war effort. Real GDP contracted by 0.2% in the first quarter of this year and forecasted GDP growth will remain at 1.3% in 2026 and 1.1% in 2027.

Sanctions on energy have dramatically reduced fiscal revenues for Russia. Payments from the EU to Russia for energy in 2025 were 85% below 2021 levels. Our financial sanctions are also making life harder for the Kremlin: bank profitability is declining and the growing issuance of Russian government bonds can only be absorbed by increasingly relying on purchases by large Russian banks. On trade, EU exports to Russia in 2025 were down 66% compared to 2021, and imports by 83%. Sanctions have made Russia’s procurement of key technologies and products harder, more expensive, and of lower quality.

The Russian economy is in its weakest state since the start of the war. The windfall gains from higher oil prices due to the situation in the Middle East will not be sufficient to compensate for the ever-increasing structural weaknesses in the Russian economy.

For more information

Questions and answers

Official Journal

More information on sanctions

EU Sanctions Helpdesk


Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© UNICEF/Ninja Charbonneau A woman and child walk past destroyed buildings in Homs, Syria.

Syria’s hopes for renewal hinge on rebuilding trust, lives and livelihoods

This article is published in association with United Nations. A country long known as a meeting point of civilizations, Syria stands once again at a crossroads. Across Syria, the scars of war remain etched into communities that have endured years of violence, displacement and loss.  Yet amid the devastation, hopes are also taking root, hopes for […]
UN News Malala Yousafzai visits the Jordanian border crossing at Hadalat where hundreds of Syrian refugees cross each day. Photo: UNHCR

75 years later, the promise to protect refugees faces its greatest test

This article is published in association with United Nations. As the world marks the 75th anniversary of the Refugee Convention, the UN refugee agency (UNHCR) has launched a global campaign urging governments, organizations and individuals to renew their commitment to protecting people forced to flee war, violence and persecution. The initiative, called The Promise, comes at a time when […]
© UNICEF/Ninja Charbonneau A woman and child walk past destroyed buildings in Homs, Syria.

Syria’s hopes for renewal hinge on rebuilding trust, lives and livelihoods

This article is published in association with United Nations. A country long known as a meeting point of civilizations, Syria stands once again at a crossroads. Across Syria, the scars of war remain etched into communities that have endured years of violence, displacement and loss.  Yet amid the devastation, hopes are also taking root, hopes for […]
© Unsplash/Abolhassan Neghabi The Strait of Hormuz is a strategically located waterway between the Persian Gulf and Gulf of Oman.

Stranded seafarers remain trapped as Hormuz shipping stalls

This article is published in association with United Nations. As the Iran-US war continues, the key question remains unanswered about how shipping through the Strait of Hormuz will be managed in future – although the UN has reiterated that charging tolls for safe passage runs contrary to international law. Addressing the UN Security Council on Thursday, […]
© UNOCHA A humanitarian aid worker talks to a woman in front of a damaged apartment building in Kryvyi Rih, in south-central Ukraine.

World News in Brief: Aid for Ukraine, drone attacks in Sudan, DR Congo deaths, neurological disorders in the Americas

This article is published in association with United Nations. UN partners launched the Winter Response Plan to help 2.1 million people in Ukraine survive another cold season as the country grapples with the on-going Russian invasion. Tweet URL The UN’s office in Ukraine announced on Wednesday that its partners are seeking $358.4 million to provide heating assistance, shelter […]
This article is brought to you in association with the European Commission.

World News in Brief: Sexual violence in DR Congo, deaths in Ukraine and Russia, crime in Southeast Asia

World News in Brief: Sexual violence in DR Congo, deaths in Ukraine and Russia, crime in Southeast Asia
© UNICEF/Oleksii Fili Local residents wander among debris following a Russian missile attack in Kyiv, on 19 July 2026.

Ukraine: Deadly Russian attacks severely damage aid warehouses

This article is published in association with United Nations. Russian attacks and drone strikes killed at least two children and injured dozens more across Ukraine over recent days while severely damaging three critical aid warehouses, UN agencies reported on Monday. The UN aid coordination agency, OCHA, said attacks over the past days killed and injured dozens […]
Sweden: EIB invests €77,5 million to deepen Port of Gothenburg for next-generation ships

US-Iran war: UN chief calls for new diplomatic push following attacks on civilian areas

This article is published in association with United Nations. The UN Secretary-General remains deeply concerned by the continuing deadly military escalation between Iran and the United States, his spokesperson said on Friday as attacks destroyed key civilian and military infrastructure across the Gulf region. “He is particularly concerned about attacks on civilian infrastructure in Iran and […]
©UNIFIL /Kandice Ardiel UN peacekeepers in Lebanon examine remnants of a drone that detonated inside the mission’s Naqoura headquarters.

Peacekeepers step up support as families return to south Lebanon

This article is published in association with United Nations. With violence in south Lebanon significantly decreased since mid-June, UN peacekeepers there have returned to core functions such as protecting humanitarian aid and restoring critical infrastructure as families continue to return home. “The welcome reduction in violence allows our peacekeepers to do more of what we are […]
© NASA A satellite photo shows the strategically important shipping route of the Strait of Hormuz.

Gulf crisis: Guterres calls for de-escalation, warns against return to full-on war

This article is published in association with United Nations. UN Secretary-General António Guterres voiced deep concern on Wednesday over the continuing military escalation in the Middle East amid ongoing strikes by the United States and Iran over control of the Strait of Hormuz.  The fighting has broken an interim truce established under a Memorandum of Understanding signed by […]
© UNICEF/Josue Mulala Girls play football at an event in DR Congo.

World Cup football’s other goal: Helping young people talk about mental health

This article is published in association with United Nations. When Dr. Sahira Al Nahari founded Shifā Art, a Saudi Arabia-based organization using art to create conversations around mental health, she noticed that men attending her therapeutic art workshops often felt uncomfortable opening up about their feelings. At these workshops, however, men often begin by sketching football […]
© UNFPA/Jonas Yunus Health workers in North Kivu, eastern DR Congo, prepare to treat patients as the Ebola outbreak continues.

‘This is a fire’: DRC Ebola outbreak is fastest-growing ever, warns WHO

This article is published in association with United Nations. Infections of the Bundibugyo species of Ebola in the Democratic Republic of the Congo (DRC) have reached record highs and a majority of new cases are coming from “unknown chains of transmission”, the UN World Health Organization (WHO) warned on Tuesday. Why this matters Speaking to reporters […]
© WFP/Maxime Le Lijour The majority of homes in Gaza are still barley habitable.

World News in Brief: Aid deliveries to Gaza restricted, UN prepares El Nino response, El Salvador eliminates disease

This article is published in association with United Nations. The UN World Food Programme (WFP) is calling for greater humanitarian access to Gaza, warning that restrictions on aid deliveries, ongoing violence and funding shortages are severely limiting its ability to reach people in need. Tweet URL Reporting from a recent aid convoy mission, WFP Country Director for Palestine […]
This article is published in association with United Nations.

Peak heat in Europe just broke historic 1970s records

This article is published in association with United Nations. This year marks the hottest June recorded for Western Europe and the second warmest globally, according to the latest report from a climate tracking service released on Thursday. “Heatwaves like this are what we expect to see in a changing climate,” said John Kennedy, head of climate […]
© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

UN chief urges Iran and US to ‘urgently resume negotiations’ as Gulf strikes escalate

This article is published in association with United Nations. Renewed strikes and counterstrikes between Iran and the United States in the Gulf region have raised fears of a return to all‑out war, with Washington denying Tehran’s claim that it had closed the crucial Strait of Hormuz on Sunday. The US said it had struck around 140 […]
This article is published in association with United Nations.

Peak heat in Europe just broke historic 1970s records

This article is published in association with United Nations. This year marks the hottest June recorded for Western Europe and the second warmest globally, according to the latest report from a climate tracking service released on Thursday. “Heatwaves like this are what we expect to see in a changing climate,” said John Kennedy, head of climate […]
UN News Children collect water from a truck in a displaced persons camp in Gaza. (file)

Diplomats go virtual to witness Gaza displacement site up close

This article is published in association with United Nations. Representatives from 12 countries carried out a “virtual diplomatic field visit” to a displacement site in the Gaza Strip and heard from some of the residents about their pressing needs, the United Nations said on Thursday.  The UN Humanitarian Coordinator for the Occupied Palestinian Territory (OPT), Ramiz Alakbarov, and his […]
This article is brought to you in association with the European Commission.

Commission seeks feedback on commitments offered by Sanofi over possible anticompetitive conduct regarding the promotion of a flu vaccine for vulnerable patients

This article is brought to you in association with the European Commission. The European Commission invites comments on commitments offered by Sanofi to address competition concerns regarding a communication campaign that has possibly disparaged the only rival flu vaccine recommended for vulnerable patients with risk factors. The Commission’s investigation Sanofi, headquartered in France, is a multinational […]
This article is published in association with United Nations.

US-Iran war: Renewed attacks in Strait of Hormuz prompts another global energy alert

This article is published in association with United Nations. Renewed attacks on shipping in the Strait of Hormuz unsettled energy markets on Wednesday and prompted calls from the UN maritime agency, IMO, for “maximum restraint and de-escalation”. Amid reports that three merchant vessels were hit along with Iranian targets, IMO Secretary-General Arsenio Dominguez condemned “reckless attacks” […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com