EU Sanctions Regime Against Russia Strengthened Through Latest Packages
The Council of the European Union (the “Council”) has continued to strengthen its sanctions regime against Russia over the past months through its 20th sanctions package (April 2026), a “mini” package (June 2026) and its 21st package (July 2026). These packages significantly broaden the scope of EU sanctions through enhanced financial, trade and anti-circumvention measures, and aim to further depress Russia’s economy and war efforts.
Shipping, Energy and Mining
An additional 41 shadow fleet vessels have been designated, bringing the total to over 670. For the first time, the designation criteria have been expanded to capture vessels providing bunkering or ship-to-ship transfer services. Member States may now confiscate and sell cargo from detained shadow fleet vessels. The package also targets oil refineries in Russia, Belarus and third countries (including a Georgian refinery), and introduces liquified natural gas (“LNG”) tanker sale notification requirements.
However, the adoption of the 21st package was delayed by the Greek government, which demanded protections for Greek shipping company Dynagas, a transporter of Russian LNG. The package as initially drafted would have prevented EU companies from transporting, purchasing or selling Russian LNG to customers outside the European Union, effectively ending European participation in Russia’s global LNG export business. Following Greek lobbying, companies operating under contracts signed before 24 February 2022 may now continue transporting Russian LNG to third-country markets until at least 25 July 2027.
The Military Industrial Complex
The 21st package designates 56 persons and companies involved in Russia’s military-industrial complex, of which 37 are directly related to long-range drone production. This includes entities involved in the development and manufacturing of drones, as well as those providing services and support for these activities.
51 new entities have also been added to the list of those subject to stricter export restrictions on dual-use goods and technologies. Some of these entities are located in third countries such as China (14, with 4 in Hong Kong), Turkey (4), Kyrgyzstan (3), India (2), Kazakhstan (2), and the UAE (2). This includes entities that facilitate Russia’s circumvention of restrictions in sectors including microelectronics, computer numerical controlled machine tools, and semiconductor processing equipment.
Financial Services and Crypto
Transaction bans have been extended to an additional 33 Russian credit and financial institutions (effective as of 13 August 2026), bringing the total number of Russian banks excluded from the EU internal market to over 100. The ban also extends to financial messaging services, and a Kyrgyz bank connected to Russia’s SPFS messaging system has been added to the list.
Asset freezes have been imposed on 94 banks together with a prohibition on making funds available to them. Four sanctions designations connected to the cross-border A7 network (the Russian system created to bypass SWIFT and other Western financial restrictions on Russian transactions) have also been made, targeting entities involved in the development and operation of this network.
The EU’s latest sanctions package demonstrates its commitment to maintaining a robust and effective sanctions regime against Russia, aimed at countering Russia’s efforts to circumvent restrictions and undermine international efforts to address the ongoing conflict.
Original Article: Closing the Loopholes: Inside the EU’s Latest Sanctions on Russia — Mccannfitzgerald