EU adopts its 21st package of sanctions against Russia

In the Press Release, the EU Council describes the package as "harsh economic sanctions", hitting sectors of great impact on Russia’s economy and ability to fuel its war against Ukraine. Kaja Kallas, the High Representative of the European Union for Foreign Affairs and Security Policy, posted on X that:

"We are hitting Putin where it hurts most: cutting off the financial lifelines he relies on to sustain his war."

By way of background, the European Council reaffirms its continued firm and unwavering support for Ukraine’s independence, sovereignty and territorial integrity within its internationally recognised borders. The European Council further supports diplomatic efforts to bring Russia’s war of aggression to an end and underlines the EU’s readiness to step up its engagement in that context, in accordance with the Union’s aim to promote peace, as the European Union will continue to provide, in coordination with like-minded partners and allies, comprehensive political, financial, economic, humanitarian, military and diplomatic support to Ukraine and its people, as stated in the European Council conclusions on Ukraine and on European defence and security. 

Financial sector measures

The package represents the largest batch of individual listings over the last four years, with a total of 218 listings, of which 48 individuals and 170 entities. Amongst the new listings are 94 Russian financial institutions, which results in nearly all Russian banks being subject to EU asset freeze restrictions. 

An additional 33 Russian banks are made subject to a transaction ban, also including a disconnection from the SWIFT international payment system. One Kyrgyz bank connected to Russia’s financial messaging network (SPFS) and three other non-Russian banks identified as circumventing sanctions have also been listed under the transaction ban. The Moskow Stock Exchange has also been added to the list. 

The transaction ban is also extended to 14 third-country crypto platforms based in Georgia, Panama, the Marshall Islands, Belarus and the United Arab Emirates, plus four designations linked to the cross-border A7 crypto network.

Furthermore, the EU introduces a new legal basis enabling a full third-country ban for crypto-asset services, making it possible for the EU to ban any transaction between EU operators and crypto providers used by Russia. This is the first sector-wide country-level tool of its kind.

Energy and maritime measures

An additional 41 vessels are added to the shadow-fleet list, due to engagement in circumventing the oil price cap mechanism, supporting the Russia's energy sector in other ways, transporting military equipment for Russia or for having stolen Ukrainian grain. The total of vessels subject to EU targeted restrictions is now 673. 

With the 21-package, the EU also expands the listing criteria of vessels, allowing for the inclusion of vessels providing services to the shadow fleet, including bunkering and refuelling. 

The Russian crude oil price cap is frozen at USD 44.10 per barrel until 15 July 2027, to ensure that Russia's oil revenues remain contained despite the exceptional market situation caused by the closure of the Strait of Hormuz.

The expanded asset freeze list target the oil sector, in particular refineries. Eighteen entities and one individual in the oil sector have been designated, including three Russian refineries, a major Belarusian refinery and a refinery in Georgia. The package creates the possibility to prohibit transactions with listed refineries in Russia and in third countries processing or refining Russian crude oil and petroleum products. Five oil traders have been added to the entities subject to a transaction ban. 

The Council has also designated a key cross-border energy supplier and a prominent figure of Russian Railways, and extended its transaction ban to two Russian ports and four Russian airports.

The EU is also targeting other means of Russia's revenue generation by designating seven major actors in the gold sector, one of the most important diamond companies, as well as several entities active in the mining and metallurgy sectors.

A specific carve-out has been introduced to preserve the ability to make funds available to Russian Railways for rail transport between Russia and the Union, in transit through the Union, between the Kaliningrad Oblast and Russia, or within Russia, or to funds or economic resources of JSC Russian Railways necessary for the provision of services related to the operation, maintenance or security of such rail transport in Article 6g of the EU Regulation 269/2014 (as amended). 

A notification obligation has been introduced for the sale of LNG tankers, similar to the notification provision already in place for crude tankers. There is also a requirement to include a contractual prohibition on any further resale or transfer of the vessel to any natural or legal person, entity or body in Russia or for use in Russia in sale contracts of an LNG tanker vessel.

As regards LNG, a temporary exemption has been introduced from the prohibition on transfers of Russian LNG to third countries, subject to strict conditions. The exemption applies only where both the transfer and the related purchase are executed under long-term contracts concluded before 24 February 2022. Detailed reporting obligations apply to EU operators carrying out such transfers.

Military-industrial complex and trade measures

The package designates 56 individuals and entities for involvement in Russia’s military-industrial complex, 37 of which are directly linked to long-range drone production and supply chains. A further 51 entities have been added to the list of those subject to tighter export restrictions on dual-use goods and technologies. Several of these are located in third countries – including China (including Hong Kong), India, Kazakhstan, Kyrgyzstan, Türkiye and the UAE – and contribute to Russia's circumvention of export restrictions on microelectronics, CNC machine tools and semiconductor processing equipment.

The existing export ban has been expanded to cover items and technologies used by Russia's military industry, including nickel powders, metals and alloys for corrosion-resistant jet engine coatings, beryllium powders for propellants and high-performance alloys, self-adhesive films, tapes and strips for the aerospace and defence sectors; and UAV-specific aviation items such as ground support equipment, jamming and interception systems, launch systems, servomotors, and flight termination systems for drones and missiles. On the import side, further restrictions target goods generating significant revenues for Russia, including copper ores, nickel ores, lead ores, precious-metal ores, unwrought zinc, alkaline-earth metals, zinc oxides, chromium oxides, glassware, imitation pearls and car parts.

Measures on Belarus intended to mirror those imposed on Russia are also included. 

Other measures

Legal protection: 

• The EU introduces two significant protections for EU operators in EU Regulation 269/2014, similar to those already implemented in EU Regulation 833/2014.
• Under Article 11c in EU Regulation 269/2014, Member States shall not recognise, give effect to or enforce any court or administrative decision by a Russian court or authority – including decisions pursuant to Articles 248.1 and 248.2 of the Russian Arbitration Procedure Code – holding a person referred to in Article 17(c) or (d) liable, or giving effect to any claim against such a person, in connection with contracts or transactions affected by the Regulation, including in insolvency or restructuring proceedings.
• Under Article 11a, EU operators may recover damages, including legal costs, in Member State courts from Russian entities that have brought claims against them before courts in third countries in connection with contracts affected by EU sanctions.

Propagandists: 

• Eight individuals have been designated for operating state-sponsored propaganda platforms. 

War crimes: 

• A Major General has been designated for engaging in the torture, executions and desecration of bodies of Ukrainian military personnel, including prisoners of war. Further individual designations under Russia's Human Rights regime were adopted separately on 13 July 2026.

Paks II exemption: 

• A specific derogation is introduced for three designated entities involved in Hungary's Paks II civil nuclear project. Funds and economic resources strictly necessary for the establishment, operation, maintenance, fuel supply, retreatment and safety of the project's civil nuclear capabilities are exempt from the asset freeze.

Norwegian implementation

Norway implemented the 20th package of EU sanctions against Russia into Norwegian law on 14 July 2026. 

The Norwegian measures correspond closely to the EU's 20th package and cover the same key sectors: energy, finance, trade, and maritime. The implementing amendments entered into force upon publication.

The measures include the listing of 46 additional shadow fleet vessels and the activation of Norway's equivalent of the EU anti-circumvention tool targeting exports of CNC machine tools and radio equipment to Kyrgyzstan. Twenty additional Russian banks, as well as banks in Kyrgyzstan, Laos and Azerbaijan, have been made subject to transaction bans. Extended restrictions also apply to crypto-asset services and the provision of maintenance and technical assistance for Russian-flagged LNG tankers and icebreakers. New due diligence obligations and a mandatory "no Russia" clause apply to sellers of tanker vessels.