EU approves 21st sanctions package against Russia, freezes oil price cap at $44.10 after Greek shipping exemption

Agreement reached after weeks of deadlock

European Union ambassadors reached a political agreement on the 21st sanctions package against Russia on Thursday, overcoming a Greek veto that had stalled the measures for weeks. The deal was struck via written procedure, giving national governments 24 hours to object before formal adoption. Diplomats described the negotiations as "complex" but said unity was preserved, as with the previous 20 packages. The breakthrough came after Greece secured concessions for its shipping industry, allowing the package to move forward before the summer recess.

Oil price cap frozen at $44.10

The most urgent element was the extension of the price cap on Russian crude oil. The existing mechanism, which sets the maximum payable price at 15% below the market average, was due for revision on Thursday. Without an agreement, the cap would have automatically risen to an estimated $60 per barrel, driven by the spike in global oil prices following the closure of the Strait of Hormuz during Donald Trump's military campaign in Iran. EU officials considered that level unacceptable, as it would have boosted Vladimir Putin's war revenues. The 27 member states instead froze the cap at its current level of $44.10 per barrel for another 12 months.

Greek shipping exemption unlocks the deal

Greece had blocked the package over a provision banning EU operators from transporting Russian liquefied natural gas to third countries. That ban was originally part of the 19th sanctions package adopted in late 2025, but Athens argued it had been inserted without proper legal basis. The Greek government, under pressure from shipping magnate George Prokopiou, whose company Dynagas operates ice-breaking LNG tankers serving the Yamal LNG project in the Arctic, demanded an exemption. The compromise allows the continuation of contracts signed before Russia's full-scale invasion of Ukraine in February 2022, while prohibiting new ones. Total's CEO Patrick Pouyanné also lobbied Brussels to relax the LNG marketing ban set to take effect in January 2027.

Financial and sectoral sanctions widened

Beyond energy, the package adds 32 Russian banks to the list of entities subject to a transaction ban. It also targets crypto-asset firms and oil trading platforms. For the first time, the EU is sanctioning vessels that assist Russia's so-called shadow fleet, used to circumvent Western restrictions on oil exports. A proposed broad visa ban to prevent Russian citizens who fought in Ukraine from entering the bloc was postponed, with member states only committing to work on it in the future. Bulgaria succeeded in keeping Patriarch Kirill, head of the Russian Orthodox Church, off the sanctions list. Portugal and Germany had raised concerns over Russian cod imports, while Italy and France objected to the visa restrictions.

EU leaders hail the package

At a time when Ukraine has gained military momentum, our sanctions continue to weaken the economic foundations of Russia's war effort. We are adding another 32 Russian banks to our list of entities subject to a transaction ban, as well as crypto companies and oil trading platforms. We freeze the adjustment of the oil price cap for a year so that the Russian war machine does not benefit from market shocks. For the first time, we are sanctioning vessels that support Russia's shadow fleet. And we have taken an important step towards the formal ban on the entry of Russian combatants into the EU.

European Council President António Costa called the package "another decisive step to intensify pressure on Russia" and stressed that EU support for Ukraine and a just and lasting peace remains unwavering. High Representative Kaja Kallas had earlier threatened to launch an alternative plan if no deal was reached before the summer break.

What comes next

The written procedure means the sanctions will be formally adopted unless a member state objects within 24 hours. Diplomats expect no further hurdles. The focus now shifts to the implementation of the new measures and the ongoing work on the postponed visa ban for Russian combatants. The oil price cap freeze, in particular, is designed to deprive Moscow of significant revenues at a time of heightened energy market volatility.