What does the new EU sanctions package for Russia include?

The Council of the EU has adopted the 21st package of restrictive measures against Russiain response to its war of aggression against Ukraine. This is the heaviest package the EU has ever inflicted on Russia. “With each round of sanctions, we put pressure on the Russian economy and its ability to prolong its illegal war. Our 21st package includes the largest number of insertions in four years,” the High Representative for Foreign Policy wrote in a note Kaja Kalla. In fact, numerous areas are affected by the new restrictions: from energy to trade, from finance to the transport of Russian gas to third countries, from the ban on entry into the EU of former combatants to restrictive measures towards the shadow fleet.

The package approved today, after weeks of diplomatic efforts, includes harsh economic sanctions targeting the sectors that have the greatest impact on the Russian economy and its ability to fuel the war of aggression against Ukraine, and the largest list of individuals placed on restrictive lists in the last four years, totaling 218, including 48 individuals and 170 entities. The sanctions are a response to recent brutal Russian military attacks that have deliberately targeted civilian infrastructure, including energy, water and healthcare facilities, cultural and religious sites, causing serious disruption to the civilian population. “The EU remains determined to maintain and intensify the pressure on Russia to cease its brutal war of aggression and engage in meaningful negotiations for a just and lasting peace,” reads the Council statement.

The measures taken against the Kremlin

1. Freezing of assets. With today’s measures, the Council has imposed asset freezes and a ban on the transfer of funds on 94 banks and major financial institutions, as well as on a leading figure in the Russian banking system. It is extending the transaction ban on 33 other Russian credit and financial institutions. Furthermore, it is introducing a transaction ban on a Kyrgyz bank linked to the blocking of the System for Transfer of Financial Messages (SPFS) and three other non-Russian banks for evading sanctions. The EU is adding four designations related to the cross-border A7 network, including its new connections with Africa, and is extending the transaction ban to 14 cryptocurrency-related service platforms based in Georgia, Panama, the United Arab Emirates, Marshall Islands, Kyrgyzstan and Belarus.

2. Cryptocurrencies. For the first time, the EU introduces the possibility of a total ban on cryptocurrency services provided by third countriesas a strong deterrent for countries hosting platforms that help Russia evade European sanctions. This new tool will allow the EU to ban any transactions between an operator from the European Union and any cryptocurrency provider used by Russia.

3. Energy. Regarding energy, today’s package suspends the automatic adjustment of the oil price cap mechanism (‘oil price cap’) until 15 July 2027 to ensure that Russia’s profits from oil sales remain contained, despite the exceptional market situation caused by the closure of the Strait of Hormuz.

4. Shadow Fleet. The EU also continues to target the shadow fleet, extending the scope of existing rules to ships that support it, providing bunkering and other services, and adding another 41 ships to the list, in addition to the 632 already sanctioned. These measures target non-EU oil tankers that are part of the shadow fleet that circumvent the oil price cap mechanism, that otherwise support the Russian energy sector, or that transport military equipment for Russia or stolen Ukrainian grain.

5. The oil sector. The EU has designated eight entities and one individual active in the shadow fleet ecosystem, including companies operating on behalf of major Russian oil companies and, for the first time, a crew recruitment agency providing support to the shadow fleet. Additionally, the EU designated 18 entities and one individual in the oil sector, including three refineries in Russia, a large Belarusian oil refinery, as well as a company created to sell Belarusian oil products in Russia. The package also includes the possibility of prohibiting transactions with listed refineries in Russia and third countries that process or refine Russian crude oil and petroleum products. In this context, the EU imposes a transaction ban – which will come into force in six months – on a Georgian refinery trading and processing Russian oil in Kulevi. The EU has added five oil industry players to the list of entities subject to the transaction ban for evading the ban on the purchase of Russian crude oil and petroleum products.

The EU is also putting pressure on Russian critical infrastructure: the Council has decided to designate a major cross-border energy supplier and a leading figure from Russian Railways, while also extending the transaction ban to two Russian ports and four airports. Today’s package introduces thenotification requirement for the sale of LNG carriers and the possibility of introducing new restrictions on the sale of such vessels to Russian citizens and businesses, as well as other contractual obligations to mitigate the risk of resale in Russia or use in Russia.

6. Gold and metals. The EU has targeted other sources of Russia’s income, designating seven major gold operators, one of the most important diamond companies, as well as several entities active in the mining and metallurgical sectors.

7. The Russian military industry. In order to limit Russia’s ability to wage wars and attacks, particularly through the use of long-range drones, today’s package introduces 56 people and companies involved in the Russian military-industrial complex in the restricted entities list. Of these, 37 are directly linked to long-range drones, with particular reference to their production and supply chain. The Council also added 51 new entities to the list of those subject to tougher restrictions on the export of dual-use goods and technologies, due to their support for the Russian military-industrial complex in the war of aggression against Ukraine. Some of these entities are based in third countries (China, including Hong Kong, India, Kazakhstan, Kyrgyzstan, Turkey and the United Arab Emirates) and contribute to Russia’s circumvention of export restrictions, particularly in microelectronics, numerically controlled (CNC) machine tools and semiconductor processing equipment.

8. Ban on entry of former Russian combatants. The package lays the groundwork for a complete visa ban for combatants and ex-combatants of the Russian Armed Forces and other proxies participating in Russia’s war of aggression in Ukraine. At a technical level, the decision must be made by October 2026.

9. Trade. The EU agreed to expand the current export ban to include items and technologies used by Russia’s military industrysuch as nickel powders, metals and alloys used in corrosion-resistant coatings in jet engines; beryllium powders used in propellants and high-performance alloys; self-adhesive films, tapes and strips used in the aerospace and defense industries; specific aeronautical items for unmanned aerial vehicles (UAVs), such as ground support equipment, jamming/interception systems, launch systems and servomotors, and flight termination systems for drones and missiles. Furthermore, the EU has introduced additional restrictions on the import of goods that generate significant revenue for Russia (worth more than 60 million euros), such as copper ores, nickel ores, lead ores, precious metal ores, crude zinc, alkaline earth metals, zinc oxides, chromium oxides, glassware, imitation pearls and car parts. Trade in cod and other fish products from Russia is excluded.

10. Belarus. Today’s package also includes measures on Belarus intended to mirror those imposed on Russia, in particular trade measures (import bans on goods that generate significant revenue for Belarus, as well as export restrictions related to the military industry) and legal protection.

11. Russian propaganda. The EU is designating eight people to spread Russia’s war propaganda and contribute to its manipulative war narrative against Ukraine. As part of this package, the EU designates a major general and war criminal, responsible for the torture, execution and desecration of the bodies of Ukrainian military personnel, including prisoners of war. This list is in addition to additional designations under the Russian human rights regime, adopted on July 13. The EU is strengthening the legal protection of European operators in disputes arising from restrictive measures, allowing European courts and member states not to recognize or enforce any judicial decisions obtained in legal proceedings filed in Russian courts.