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Today, on 23 July, the Council of the European Union (EU) approved the 21st package of economic sanctions against Russia, including individual listings.

“The new sanctions package significantly increases pressure on Russia’s financial sector and further restricts Russia’s access to capital markets. However, the outcome of the negotiations on the 21st sanctions package has shown that member states' economic interests increasingly shape decisions on the EU’s sanctions policy. This dangerous trend not only reduces the EU’s ability to increase pressure on Russia but also weakens the impact of sanctions already in place,” said Minister of Foreign Affairs Kęstutis Budrys.

The package adopted today by the EU further strengthens the measures against Russia’s shadow fleet: adds 41 ships to the shadow fleet list, bringing the total to 673 vessels, and expands the criteria for imposing sanctions—including the additional possibility to target service providers by sanctioning vessels that engage in refueling and ship-to-ship (STS) transfers. In addition, the package introduces a new notification obligation for the sale of liquefied natural gas (LNG) tankers.

In light of the significant recent disruptions in global oil and petroleum product markets and to ensure that Russia's profits from oil sales remain contained, the Council decided to pause the automatic adjustment of the oil price cap mechanism until 15 July 2027.  By 15 January 2027, the European Commission will submit information to the Council on a recalculated price cap for oil, and the Council will be able to decide whether to amend it. In the absence of such a decision, the current $44.10 per barrel price cap on Russian oil is frozen until 15 July 2027.

The new package of sanctions also increases pressure on Russia’s financial sector, imposing individual sanctions on more than 80 Russian banks, and imposing a transaction ban on 33 additional credit and financial institutions.

The EU continues to consistently tighten restrictive measures against financial and credit institutions, as well as crypto-related service platforms that support Russia’s war of aggression against Ukraine. To prevent sanctions circumvention through third countries, the Council also introduced a third-country ban for crypto-asset services, targeting platforms based in non-EU countries.

According to the Council, the evidence obtained confirms that entities from third countries continue to contribute to Russia’s ability to wage its war of aggression against Ukraine. In light of this, the Council has decided to extend its transaction ban to include four additional financial institutions based in third countries and 14 crypto-related service platforms, including “HTX,” one of the world’s biggest crypto exchanges.

With this new package of sanctions, the Council has also expanded the prohibition on Russian nationals and persons residing in Russia from managing, controlling, or holding certain posts in the governing bodies of legal persons, entities, or bodies established or registered in EU member states. The extended prohibition on crypto services applies to entities under Regulation (EU) 2023/1114  of the European Parliament and of the Council.

The Council has also added 51 new entities to the list of those subject to tighter export restrictions on dual-use goods and technologies, due to their support for Russia’s military and industrial complex in its war of aggression against Ukraine. Some of these entities are located in third countries (China, including Hong Kong, India, Kazakhstan, Kyrgyzstan, Türkiye, and the United Arab Emirates) and contribute to Russia’s circumvention of export restrictions.

The Council also imposed additional sanctions on two more Russian seaports and four airports. In total, EU sanctions will apply to 9 Russian seaports and 10 Russian airports.

Further restrictions have been introduced on the import of goods to further restrict Russia's war economy, including on copper ores, nickel ores, lead ores, precious-metal ores, and unwrought zinc; alkaline-earth metals, zinc oxides, and chromium oxides, tall oil, glassware; and automotive/car parts.

The new sanctions package contains 216  additional listings (individuals and 170 entities responsible for actions that violate Ukraine’s territorial integrity, sovereignty, and independence).

Today, the Council also approved new sanctions against Belarus, aligned with the restrictions set out in the 21st sanctions package against Russia. In addition, targeted restrictive measures have been imposed on two entities operating in the Belarusian energy sector: the Mozyr Oil Refinery and the European Trading Company, a firm that sells Belarusian oil products inside Russia.