The EU's 21st sanctions package against Russia has finally been agreed after weeks of tense negotiations, with a critical concession granted to Greece proving the turning point. The deal, reached by EU ambassadors on Thursday morning, widens the scope of punitive measures aimed at crippling Russia's economic capacity to fund its ongoing conflict in Ukraine.
Key elements of the new package include a transaction ban on an additional 32 Russian banks, as well as several crypto firms and oil trading platforms. Crucially, the existing oil price cap on Russian revenues, set for an automatic increase next month, has been frozen for a further 12 months to prevent Russia from profiteering from market shocks.
A significant breakthrough in the stalled negotiations came with an exemption granted to Greece, allowing Athens to veto its previous objections. Under the new agreement, Greece will receive a one-year exemption from an earlier EU measure, enabling Greek companies to transport liquefied natural gas (LNG) to non-EU countries, provided the contracts were signed before Russia's full-scale invasion. This concession specifically protects Dynagas, a large Greek shipping company specialising in transporting LNG from Russia’s Yamal fields.
The package also marks a notable increase in individual sanctions, reportedly the highest number included in any single package over the last four years. However, a proposed ban on Russian ex-combatants from entering the EU appears to have been delayed, with a commitment instead to 'bring forward the necessary measures' at a later date.
European Commission President Ursula von der Leyen welcomed the adoption, stating that the sanctions 'continue to weaken the economic foundations of Russia’s war effort.'
The latest EU sanctions serve as a stark reminder of international pressure on Moscow. While the UK is no longer an EU member, it has implemented its own extensive sanctions regime against Russia, often in coordination with European and international partners. The freezing of the oil price cap will have far-reaching implications for global energy markets, potentially influencing petrol prices and broader inflationary pressures that affect British consumers.
The Foreign, Commonwealth & Development Office (FCDO) continues to advise against all travel to Russia and Ukraine, reflecting the ongoing instability in the region.