The European Union has agreed on a new sanctions package against Russia, targeting banks, crypto operators, oil trade and shipping activity linked to Moscow's war in Ukraine.

EU Approves 21st Russia Sanctions Package

EU envoys approved the bloc's 21st sanctions package after weeks of negotiations among member states. The measures cover 218 individuals and entities, making it the EU's largest sanctions round against Russia in four years. The package continues the EU's escalating sanctions program launched after Moscow's February 2022 invasion of Ukraine, which has progressively tightened restrictions on Russian finance, energy, and trade.

EU foreign policy chief Kaja Kallas said the package focuses on key financial and energy channels. She wrote, “We've hit more than a hundred banks and crypto operators, over 40 shadow fleet vessels, and several oil refineries in Russia and Belarus, who help keep Moscow's war going.” The shadow fleet — a network of older tankers operating outside Western insurance and regulatory oversight — has been central to Russia's efforts to export crude above the price cap.

Source: Reuters

The measures include asset freezes, travel bans and transaction restrictions. They are directed at companies, individuals and networks accused of helping Russia sustain trade, financing and energy flows during the Ukraine war.

European Council President Antonio Costa said the package targets “energy, financial services, crypto, and trade.” The agreement followed concerns from some member states that certain restrictions could damage EU businesses more than Russia — a recurring tension across the sanctions program that has slowed earlier packages.

Russian Banks and Crypto Operators Face Additional Restrictions

The sanctions add new pressure on Russia's banking sector. Diplomats said the package designates 94 Russian financial institutions, mostly banks, as well as Moscow's stock exchange.

Those listings bring the total number of sanctioned Russian banks to more than 100. According to figures cited by EU diplomats, that represents more than half of Russia's 213 internationally connected lenders.

The package also imposes separate transaction bans on 32 banks. Those restrictions would cut the affected lenders off from SWIFT, the global financial messaging system used for payment instructions.

Russia's largest banks were removed from SWIFT shortly after the 2022 invasion of Ukraine. The new measures extend that approach to smaller and regional lenders that have helped maintain financial flows — closing gaps as Russian importers and exporters increasingly routed payments through unsanctioned institutions.

Crypto operators are also covered, as EU officials say Russian companies have used digital asset networks to preserve payment channels. The package adds crypto firms and oil trading platforms to the transaction ban list. Russia's reliance on cryptocurrencies for cross-border settlement has grown as traditional banking channels narrowed, with Russian officials publicly backing crypto legislation to facilitate international trade.

The sanctions also target more than 50 military-industrial entities. EU officials linked those companies to Russia's defense supply chain, including producers involved in long-range drone programs.

Oil Price Cap Frozen as LNG Transfer Exemption Is Added

The package freezes the Russian oil price cap at $44.10 per barrel for 12 months. The cap, set jointly by the G7, EU and allied nations, operates by barring Western companies from providing shipping, insurance and brokerage services for Russian crude sold above the threshold. It is intended to limit Russian oil revenue while avoiding a wider energy price shock.

A scheduled review could have raised the cap after crude prices increased during the Iran war. European Commission President Ursula von der Leyen said the freeze prevents Russia from benefiting from sudden market moves, writing that the bloc was “freezing the oil price cap adjustment for a year.”

Russian crude has often traded above the cap. Urals, Russia's main export grade, was valued near $67.50 per barrel this week, excluding shipping and insurance costs.

The package also includes a compromise on Russian liquefied natural gas. EU companies received a one-year exemption, with automatic renewal, allowing Russian LNG transfers to third countries after a January 1 deadline.

Greece had pushed for the exemption, arguing that a ban on transfer services would move business outside Europe without reducing Russian revenue. Greece plays a significant role in Europe's LNG carrier market and competes with shipping firms in Japan, China and the United States.

EU imports of Russian LNG will still be banned from January 1. The exemption applies to transfers to third countries, not to direct EU purchases. EU purchases of Russian LNG continued to grow after the 2022 invasion as member states sought substitutes for curtailed pipeline gas — a trend the January 1 import ban is designed to reverse.