On 23 July 2026, the European Council adopted its 21st package of Russia sanctions as well as additional measures targeting Belarus. The package concentrates on sectors with the greatest impact on Russia’s war economy, including energy, shipping, gold, financial services (including crypto), trade, and the Russian military-industrial complex.

Key elements include a full-year suspension of the oil price cap adjustment, a new tool allowing transaction bans on named refineries that process Russian crude (listing one refinery in Georgia), adding 33 more Russian banks to the transaction ban (alongside sanctions on additional Russian ports, vessels and airports, including Sheremetyevo), tighter export and import controls on battlefield-relevant and revenue-generating goods, and 51 additional entities subject to enhanced export restrictions for supporting Russia’s military-industrial complex or enabling circumvention.

The package delivers a significant new batch of designated party listings, totaling 216 new designations (48 individuals and 168 entities). These heavily target Russia’s banking sector (targeting over 90 banks and financial institutions), its shadow fleet, parties supporting the Russian gold and energy sectors (notably including oil refineries in Russia and Belarus), and more than 50 military-industrial entities, including key actors in the production of long-range drones.

For the first time, the EU is introducing a dedicated third-country ban tool for crypto-asset services, enabling a full prohibition on transactions with crypto providers established in jurisdictions that host platforms helping Russia evade EU sanctions. The package also establishes the basis for a comprehensive visa ban on combatants and ex-combatants of the Russian armed forces, with the European Council to decide on its entry into force once the necessary implementing measures are in place.

A summary of the key highlights of the 21st package follows.

Asset freeze and listings 

48 individuals and 168 entities are added to the asset freeze and the prohibition on making funds and economic resources available, with travel bans for individuals. This includes a significant volume of banks and financial institutions, many among the largest banks in Russia, alongside a number of entities and persons active in relation to the Russian (and Belarusian) energy sector, the Russian gold, diamond and shipping sector, as well as Russia’s industrial complex. Notable among the designations is the Russian conglomerate Sistema, which holds interests in companies operating across multiple sectors.

Narrow new exemptions accompany the listings, including an insurance-indemnity derogation, an exemption for necessary rail transport by JSC Russian Railways (between Russia and the Union, in transit, and within Russia), and an exemption for the Paks II nuclear project to avoid undermining nuclear safety.

Energy measures 

Oil price cap: The automatic adjustment of the oil price cap is suspended until July 2027 to keep pressure on Russian crude revenues. An interim review is provided for, and absent a Council decision the applicable cap remains in place.

Refineries and infrastructure: A new transaction ban targets refineries in Russia and third countries that process Russian oil, with Georgia’s Kulevi Oil Refinery the first listed, applying from 25 January 2027 to allow diversification. Two Russian ports and four Russian airports are also designated.

LNG: The package builds on the prohibition on importing or transferring Russian LNG, introducing a permanent exemption for transfers to third countries and a temporary one capped at 2025 volumes. It also clarifies that the LNG terminal services ban catches Russian-controlled third-country operators (from 1 January 2027) and introduces a notification obligation for sales of LNG tankers.

Shadow fleet: 41 more vessels are listed, with listing criteria expanded for the first time to catch vessels servicing designated ships, such as bunkering vessels. The oil-trader transaction ban is also broadened.

Financial measures, including crypto

Banking: 33 more Russian credit and financial institutions join the transaction ban (from 13 August 2026), and the ban extends to the use of financial messaging services.

Crypto: A new third-country ban tool allows a full prohibition on transactions with crypto providers in listed jurisdictions. Transaction bans are imposed on 4 financial entities and 14 crypto-asset service providers, with one entity removed from the transaction-ban annex, and the prohibition on Russian nationals sitting on boards is extended to any crypto-asset services business from 25 August 2026.

Wind-down: New derogations let competent authorities authorize EU, EEA and Swiss nationals to withdraw funds and close accounts at newly listed banks and crypto or payment providers in order to terminate those relationships.

Visa restrictions

The package establishes the basis for a comprehensive visa ban on combatants and ex-combatants of the Russian armed forces and other proxy groups participating in the war. The Council will decide its entry into force once implementing measures are in place, with the Commission to report on preparations in three months.

Trade measures 

Exports: The package expands the list of items that might contribute to Russia’s military and technological enhancement, drawing on goods actually used by Russia in its war of aggression. These cover nickel powders, nickel metal and nickel 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 sectors; aviation items specific to unmanned aerial vehicles (UAVs); and flight termination systems for UAVs or missiles.

Imports: New entries under Annex XXI cover copper, nickel, lead and precious-metal ores, unwrought zinc, alkaline-earth metals, zinc and chromium oxides, tall oil, glassware and car parts, with a wind-down until 25 October 2026 for pre-existing contracts.

Anti-circumvention 

51 entities are added to Annex IV for tighter dual-use export restrictions, including entities in third countries (China and Hong Kong, Turkey, Kyrgyzstan, India, Kazakhstan and the UAE) that help Russia circumvent EU sanctions. In addition, five further third-country entities are listed for significantly frustrating the EU sanctions targeting Russia’s military and technological enhancement.

Legal protection of EU operators

The package strengthens protection against abusive Russian litigation. EU operators may recover direct and indirect damages before Member State courts for claims brought against them in third countries, and Member States must not recognize or enforce Russian court decisions (including those under Articles 248.1 and 248.2 of the Russian Arbitration Procedure Code) linked to EU sanctions.

Other measures

Amended derogations to keep internet infrastructure in Russia running for the general public.

A targeted tourism carve-out for computerized reservation systems.

A carve-out allowing specific research institutions (EuXFEL, FAIR and ESRF) to honor existing funding obligations.

Two new derogations allowing national authorities to import, transfer, store, manage and sell Russian oil they have seized or confiscated.

A clarification of the derogation for transactions connected with the Nord Stream and Nord Stream 2 pipelines.

Extension to 31 December 2027 of the deadlines for various divestment and wind-down derogations.

Belarus 

The package mirrors the Russia trade measures and legal protections, adds four entities to the Belarus dual-use list, and extends the crypto board-membership ban to Belarusian nationals from 25 August 2026.

Recommended compliance checklist 

Screen: Refresh screening against the 216 new listings, the 51 Annex IV additions, and the newly listed banks, crypto platforms and vessels, noting staggered application dates.

Financial and crypto: Review payment flows against the expanded transaction ban and financial-messaging prohibition, and confirm no Russian or Belarusian nationals control or sit on the boards of group crypto businesses ahead of the 25 August 2026 deadline.

Map trade: Check product catalogues against the new export and import controls.

Third-country risk: Enhance diversion-risk diligence for counterparties in territories including China (including Hong Kong), Turkey, Kyrgyzstan, India, Kazakhstan and the UAE.

Russia exposure: Reassess any contemplated divestment  against the extended 31 December 2027 date and  consider the new litigation-protection tools in dispute-resolution strategy.