European Union member states have agreed on a 21st package of sanctions against Russia over its war in Ukraine, targeting the country’s banking sector while reaching a compromise with Greece over restrictions on Russian liquefied natural gas (LNG) transfers.

The agreement includes a one-year exemption allowing EU companies to transfer Russian LNG to third countries, following concerns raised by Greece. The exemption will automatically renew unless changes are agreed, according to EU diplomats. 

Greece argued that a full ban on LNG transfer services would mainly redirect market activity outside Europe without significantly reducing Russian revenues. While EU imports of Russian LNG will remain prohibited from 1 January, the temporary exemption allows continued third-country transfers.

The decision reflects Greece’s significant role in the global LNG shipping market, as the country operates one of the world’s largest LNG carrier fleets and is a major player alongside Japan, China and the United States.

The sanctions package also freezes the current Russian oil price cap at $44.10 per barrel for 12 months. A planned review could have raised the cap following market disruptions linked to the conflict in Iran, potentially increasing revenues available to Moscow.

European Commission President Ursula von der Leyen said the package expands restrictions on Russia’s financial and energy networks, adding 32 Russian banks, cryptocurrency firms and oil trading platforms to the EU transaction ban list.

The measures also target vessels linked to Russia’s so-called shadow fleet and advance efforts to restrict the entry of Russian military personnel into the EU. EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, also stated that the latest sanctions target Russia’s financial system, defence industry and energy sector, aiming to reduce the economic resources supporting Moscow’s war effort.

We have agreed on the 21st sanctions package against Russia.

It delivers sweeping measures targeting Moscow’s financial system, its military-industrial complex and energy sector, that keep Russia’s war economy running.

We are hitting Putin where it hurts most: cutting off the…

— Kaja Kallas (@kajakallas) July 23, 2026

EU officials stressed that further sanctions remain under consideration if Russia escalates the conflict.

Furthermore, according to a report from the Guardian, the European Commission declined to comment on the details of the LNG exemption secured by Greece as part of the EU’s latest sanctions package against Russia.

During the midday briefing, Commission deputy chief spokesperson Olof Gill was questioned about the final form of the sanctions agreement and the exemption allowing certain Russian LNG transfers to third countries.

However, he avoided providing further details despite repeated questions over whether Greece’s threat to block the package could set a difficult precedent for future sanctions negotiations.