EU: Member States reach agreement, green light for the 21st package of sanctions against Russia

Brussels – The European Union is taking “another decisive step to increase the pressure on Russia.” The President of the European Council, António Costa, has expressed his satisfaction with the agreement reached on the 21st package of sanctions against the Russian Federation. This satisfaction feels like a sigh of relief following negotiations that were never truly straightforward but, on the contrary, were fraught with divisions, doubts, and hesitations, which ultimately produced a result that fell short of the initial ambitions. 

The new set of restrictive measures had been announced by the President of the European Commission, Ursula von der Leyen, in early June. It took almost two months to reach an agreement, and in the end the result was secured because it had to be secured. As announced, the Member States found it difficult to take a hard line, and so in the end the decision was made to maintain the status quo, as per initial orientation.

The new measures: energy restrictions and a new crackdown on shadow ships

The oil price cap is being extended for a further 12 months. This maintains the ceiling at $44.7, significantly below the current market price. First introduced in December 2022, the measure stipulates that European companies may only participate in the transport of Russian oil if it is sold below a certain maximum price. Since last year, this threshold has been made “variable”, setting it at 15 per cent below the average market price. This measure, officials in Brussels explain, will deprive Russia of substantial oil revenues against a backdrop of volatility in the energy markets. 

The 27 member states have therefore reached an agreement on the trade in Russian liquefied natural gas (LNG) to third countries. There will be no restrictions on the sale or transport under contracts concluded before 24 February 2022, the day the Russian war in Ukraine began. However, “any expansion of such transfers by EU operators is subject to restrictions,” according to informed sources. This exemption will, however, be subject to annual review by the Council. 

https://www.eunews.it/en/2026/06/17/the-eu-is-seeking-channels-of-communication-with-russia/

Linked to Russian oil and energy revenues is the issue of the transport of crude oil from Lukoil and Rosneft. The 21st package of sanctions provides for the inclusion of a further 36 vessels belonging to the shadow fleet and five entities supporting it on the list of those subject to restrictive measures. This strengthens the fight against the illegal transport of Russian crude oil. Under the sanctions, Member States may confiscate the assets of the targeted entities. Also on the energy front, transaction bans have been imposed on refineries processing Russian oil, such as the Kulevi one.

Banks and cryptocurrencies hit

The EU is determined to provoke a financial crisis severe enough to force Russia to the negotiating table, by approving “extensive restrictions and transaction bans” targeting the Russian financial sector, as well as new measures against cryptocurrencies. A ban on 33 banks carrying out transactions with European entities has come into force. The EU is targeting third-country banks that facilitate circumvention, such as a bank in Mongolia and the branches of Sberbank and VTB in India. 

To prevent the use of cryptocurrencies as an alternative to the traditional banking system and thus circumvent EU sanctions, the 27 Member States are introducing transaction bans on 14 third-country platforms. The “blanket ban” criterion is being introduced, allowing the EU to block all transactions with cryptocurrency operators in a given third country if it is found that several platforms in that country are facilitating evasion.

No agreement on fish, green light to bring forward sanctions for former combatants

The 27 fail to reach agreement on fish: the proposal to impose sanctions on the trade in Russian cod is ultimately rejected and does not feature in the 21st package; however, this package “commits to bring forward the necessary measures to restrict visas for former Russian combatants.” This latter measure was a source of further friction among Member States, which ultimately agreed to work towards this end.

Economic and trade sanctions

The list of sanctions continues with restrictive economic and trade measures. The 21st package imposes restrictions on the export of dual-use goods targeting 51 entities, including 14 Chinese companies and others in Turkey, Kyrgyzstan, Kazakhstan, the United Arab Emirates, and India. The decision aims to dismantle circumvention networks. New bans have also been introduced on the import and export of metals (beryllium, alloys), minerals (copper, nickel, lead) and chemicals. An exemption from the import ban has been provided for a specific type of fur (sable) as it is difficult to source elsewhere. Finally, European shipyards will be prohibited from providing assistance to Russian ships starting in January. 

The EU is celebrating. It has managed to avoid a major embarrassment over the 21st sanctions package, which was in danger of turning into a quagmire. “This package further targets Russia’s revenue streams, hinders its shadow fleet and disrupts its supply chains,” emphasises a satisfied Helen McEntee, Minister for Foreign Affairs and Defence of Ireland, the country with the rotating presidency of the Council of the EU. “I welcome the agreement on the 21st package of sanctions against Russia. At a time when Ukraine has built up military momentum, our sanctions continue to weaken the economic foundations of Russia’s war effort,” commented von der Leyen. “For the first time, we are targeting vessels assisting Russia’s shadow fleet. And we have taken a significant step towards formally banning Russian combatants from entering the EU,” she added. 

The EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, stressed stated that the package “introduces wide-ranging measures targeting Moscow’s financial system, its military-industrial complex and the energy sector, which keep the Russian war economy running.”  Therefore, “we are hitting Putin where it hurts most: by cutting off the financial flows on which he relies to sustain his war”, but “this is not the end of the road for sanctions” because “we are already working on the next steps” as “the EU must be ready to respond to any further Russian escalation.”