EU Council adopts 21st sanctions package against Russia

European Union member states reached a political agreement today on the 21st sanctions package against Russia following weeks of negotiations. Following the agreement, the EU Council officially adopted the sanctions package. As part of the most comprehensive sanctions package of the last 4 years, the EU Council has added a total of 218 individuals and entities to the sanctions list.

Under the new sanctions package, the assets of 94 banks and major financial institutions have been frozen. Additionally, transaction bans have been imposed on 33 more Russian financial institutions. Four banks outside of Russia and 14 crypto platforms identified as assisting in the circumvention of sanctions were also targeted. The EU has also established a mechanism to ensure comprehensive transaction bans on third countries hosting crypto services used by Russia.

According to the statement from the EU Council, 41 more ships linked to Russia's "shadow fleet" have been added to the sanctions list under the measures. This brings the total number of sanctioned ships to 673. Furthermore, 19 individuals and entities from the oil sector, including three refineries in Russia and one major refinery in Belarus, have been added to the list. Within the scope of the sanctions, 56 individuals and entities linked to the Russian defense industry were also included. The price cap on Russian oil has also been frozen for one year against market shocks.

Kallas: "The most comprehensive package of the last 4 years"

EU High Representative for Foreign Affairs and Security Policy Kaja Kallas stated that the new package "contains comprehensive measures targeting the financial system, military-industrial complex, and energy sector that enable Russia's war economy to function." Kallas said the 21st sanctions package hits Russian President Vladimir Putin "where it hurts the most" and cuts off the funding sources Russia needs to sustain the war, adding, "This is the most comprehensive sanctions package of the last 4 years, with 218 individuals and entities added to the list. We have targeted more than 100 banks and crypto service providers, over 40 shadow fleet ships, and certain oil refineries in Russia and Belarus that help Moscow sustain its war. We are also responding to Russia's relentless attacks on civilians, infrastructure, and cultural heritage. We have added more than 50 entities operating in the military-industrial field, including key actors involved in the production of Russia's long-range drones, to the sanctions list."

Strongest objection to sanctions came from Greece

The strongest objection to the 21st sanctions package against Russia came from Greece. Greece, which dominates the European market in liquefied natural gas (LNG) transport, demanded changes to the Russian LNG ban set to take effect at the beginning of January 2027, requesting a comprehensive exemption so that Greece could continue to transport Russian LNG to markets outside the EU. Following turbulent negotiations that threatened the entire package, an agreement was reached to grant Greece a one-year exemption.