EU Approves 21st Sanctions Package Against Russia's Shadow Fleet, Banks and Crypto

The European Union has approved its 21st package of sanctions against Russia, expanding restrictions on the country's energy, financial and military sectors while adding another 41 vessels to its growing blacklist of ships linked to Moscow's shadow fleet.

The measures, adopted by the Council of the European Union on Friday, represent one of the bloc's broadest sanctions packages since Russia's full-scale invasion of Ukraine, with 218 new listings covering 48 individuals and 170 entities.

"This package includes the highest number of listings in four years," EU foreign policy chief Kaja Kallas said. "We're hitting over a hundred banks and crypto operators, 40+ vessels in Russia's shadow fleet, and several oil refineries in Russia and Belarus."

The maritime measures continue the EU's campaign against Russia's so-called shadow fleet of aging tankers used to transport oil outside Western sanctions. The latest package expands existing rules to cover vessels that support the fleet by providing bunkering and other services, while adding 41 more ships to the sanctions list, bringing the total number of sanctioned vessels to 673.

The package also targets companies supporting the shadow fleet. Eight entities and one individual have been sanctioned, including firms operating on behalf of major Russian oil companies and, for the first time, a crewing agency accused of supporting shadow fleet operations.

Beyond shipping, the EU sharply expanded financial restrictions by freezing assets and prohibiting transactions involving 94 Russian banks and major financial institutions, while extending transaction bans to another 33 Russian credit and financial institutions. The package also targets a Kyrgyz bank linked to Russia's SPFS financial messaging system and three other foreign banks accused of helping Moscow circumvent sanctions.

The sanctions also take aim at cryptocurrency networks allegedly used to evade restrictions. Four entities connected to the cross-border A7 payment network were designated, while transaction bans were imposed on 14 crypto service providers based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus. The EU also created a new legal mechanism allowing it to impose blanket transaction bans on crypto providers in third countries if they facilitate sanctions evasion.

In the energy sector, the EU said it would suspend the automatic adjustment of the G7 oil price cap until July 15, 2027, citing market disruption caused by the closure of the Strait of Hormuz. The agreement calls for an interim review to determine whether the suspension remains necessary.

The package also introduces a framework allowing the EU to prohibit transactions with listed refineries in Russia and third countries that process Russian crude. An existing Georgian refinery at Kulevi will face a transaction ban after a six-month transition period, while five oil trading companies were sanctioned for allegedly circumventing restrictions on Russian petroleum exports.

Additional measures target Russia's military-industrial base, with 56 new listings tied to defense production, including 37 linked directly to the manufacture and supply chain for long-range drones. Export controls were expanded to cover additional dual-use goods and technologies, and 51 more entities—including companies in China, Hong Kong, India, Kazakhstan, Kyrgyzstan, Türkiye and the UAE—were added to the list of organizations subject to tighter export restrictions for supporting Russia's defense sector.

The sanctions package also broadens import bans on Russian goods, introduces legal protections for EU companies facing litigation in Russian courts over sanctions compliance, and lays the groundwork for a future visa ban covering Russian military personnel and veterans involved in the war against Ukraine.