EU adopts 21st package of sanctions against Russia

On 23 July 2026, legal acts formalising the 21st package of European Union (“EU”) restrictive measures (sanctions) were published, including:

• Council Implementing Regulation (EU) 2026/1843 of 23 July 2026 implementing Regulation (EU) No. 269/2014 (“Regulation No. 1843” and “Regulation No. 269,” respectively);
• Council Regulation (EU) 2026/1844 of 23 July 2026 amending Regulation No. 269 (“Regulation No. 1844”); and
• Council Regulation (EU) 2026/1848 of 23 July 2026 amending Regulation (EU) No. 833/2014 (“Regulation No. 1848” and “Regulation No. 833,” respectively).

Among the key sectors of the economy affected by the sanctions are the energy, finance, transportation and military sectors. We summarise below the main new introductions of the 21st package.

I. Amendments to regulation No. 269

A. Expanding the list of asset freezing sanctions

Regulation No. 1843 has significantly expanded the list of persons and entities subject to EU asset freezing sanctions under Regulation No. 269. The updated list includes 168 legal entities and 48 individuals, in particular:

• more than 90 Russian banks and financial institutions, including Moscow Exchange MICEX-RTS PJSC, Rosselkhozbank JSC, Bank DOM.RF JSC, Bank Saint Petersburg PJSC, AK BARS Bank PJSC, Bank Uralsib PJSC, MTS-Bank PJSC, Pochta Bank JSC, Bank Tochka LLC, OZON Bank LLC, Yandex Bank JSC, Wildberries Bank LLC, BCS Bank JSC, etc. As we reported earlier, many of these banks were also subject to EU sectoral sanctions as part of the previous sanctions packages;
• more than 50 entities within the Russian military-industrial complex and associated individuals, including MSKA Engineering LLC, Polkovodets LLC, System Industrial Group LLC and others;
• major Russian companies whose activities provide a substantial source of revenue to Russia, including AFK Sistema PJSC;
• entities linked to the Russian oil sector and the “shadow fleet,” including Neftechemservis JSC and its Chairman of the Board of Directors Yuri Kushnerov, Anzhersky Oil and Gas Company LLC, Oil Refinery North Kuzbass LLC and others;
• entities linked to Russia’s energy and transport infrastructure, in particular, Inter RAO UES PJSC, as well as Oleg Belozerov, Director General and Chairman of the Executive Board of Russian Railways;
• companies in the gold mining, diamond, mining and metallurgical sectors, including Seligdar PJSC, Areal International JSC and First Diamond Company LLC; and
• Vladimir Medinsky, Aide to Russian President, Mikhail Degtyarev, Minister of Sport of Russia, and Arkady Dvorkovich, President of the International Chess Federation (FIDE).

As a reminder, EU asset freezing sanctions have the following consequences:

• EU Persons The EU sanctions measures are binding:
  
  • within the EU territory;
  • on EU citizens regardless of their location;
  • on EU-registered legal entities and their branches and representative offices;
  • on any persons within the EU territory, regardless of their nationality; and
  • on board any aircraft or vessel under the jurisdiction of an EU Member State
  (collectively – “EU Persons”). are required to block (freeze) funds and economic resources owned, held or controlled by sanctioned persons; and
• EU Persons are prohibited from directly or indirectly making funds and economic resources available to or for the benefit of sanctioned persons.

EU restrictive measures also apply to legal entities that are directly or indirectly owned (50% or more) or controlled by sanctioned persons.

B. New ground for unfreezing assets

Article 6b of Regulation No. 269 has been supplemented by paragraph 5ea, which provides for a new ground for unfreezing assets.

The competent authorities of a Member State may authorise the release of certain frozen funds or economic resources belonging to natural or legal persons, entities or bodies listed under Article 3(1)(k) of Regulation No. 269. This refers to persons who own, control, manage or operate ships carrying crude oil or petroleum products originating in or exported from Russia, while practicing irregular and high-risk shipping practices.

An authorisation may be granted provided that all of the following conditions are met:

• such release or making available of funds or economic resources is necessary to allow a payment due by a sanctioned person or by its insurance provider as a result of a risk for which the sanctioned person is liable;
• the recipient of the payment is a non-sanctioned entity established in the EU, the European Economic Area (“EEA”), Switzerland or an EU partner countryAs at the date of this legal update, this list includes the United States, Japan, the United Kingdom, South Korea, Australia, Canada, New Zealand, Norway, Switzerland, Liechtenstein and Iceland., or a national or resident of one of these countries; and
• such payment constitutes the indemnity or benefit provided further to the materialisation of the risk.

C. Exemptions for Russian Railways and Paks II

Regulation No. 269 was amended by the addition of Article 6g, which provides for an exemption from the asset freeze regime in respect of Russian Railways OJSC (“RZD”). The requirements to freeze assets and the prohibition on making funds and economic resources available do not apply to RZD’s assets that are necessary for:

• the transport by rail of goods or persons, between Russia and the EU, in transit through the EU, between the Kaliningrad Region and the remaining territory of Russia, or within Russia;
• the provision of related railway infrastructure; or
• the provision of services related to the operation, maintenance or security of such rail transport.

Furthermore, Regulation No. 269 was amended to include Article 6h, which provides for a similar exemption in respect of Uralmashzavod PJSC, UK UZTM-KARTEX LLC and IZ-KARTEX LLC named after P.G. Korobkov. The freezing of their assets and the prohibition on providing them funds or economic resources do not apply to the extent that such funds or resources are strictly necessary for the implementation of the Paks II project, which involves the construction of new civil nuclear power units in Hungary.
However, persons providing funds or economic resources under this exemption must notify the competent Hungarian authorities within two weeks of commencing such activity.

D. Amendments relating to judicial proceedings

Article 11a of Regulation No. 269 gives EU Persons the right to recover from the competent courts of EU Member States any damages (including legal costs) incurred by those persons as a result of claims brought against them in third country courts in connection with any agreement or transaction whose performance was affected by measures introduced by such Regulation. Previously, such damages could be recovered from sanctioned persons or persons acting through them or on their behalf. As part of the 21st sanctions package, this provision has been expanded: EU Persons are now entitled to claim damages in European courts from any natural or legal persons from third countries, except for EU partner countries, which, in breach of EU sanctions, have provided funds or economic resources to sanctioned persons or for their benefit, provided that such persons have brought relevant claims against EU Persons in the courts of third countries.

Article 11c has also been added to Regulation No. 269, which prohibits the recognition and enforcement of any injunction, order, relief, judgment or other court or administrative decision pursuant to or derived from Article 248.1 or Article 248.2 of the Arbitrazh Procedure Code of the Russian Federation or equivalent Russian legislation, holding liable an EU Person, whether in contract or in tort or on any other legal basis, or giving effect, directly or indirectly, to any claim, right or alleged obligation against such person, including in the context of insolvency, bankruptcy, restructuring or analogous proceedings, in connection with any contract or transaction the performance of which has been affected, directly or indirectly, by EU sanctions. As described in Section II below, a similar provision is also set out in Regulation No. 833.

II. Amendments to regulation No. 833

A. Financial sector

Expansion of sanctions lists

The EU has imposed sectoral sanctions on a number of Russian and foreign banks, as well as cryptocurrency platforms:

• 33 Russian banks have been added to Annex XIV to Regulation No. 833, including CB UNISTREAM JSC, SPB Bank JSC, National Bank Trust PJSC, Transcapitalbank PJSC, Cifra Bank LLC, Commercial Bank Renaissance Credit (LLC) and others;
• Eco-Islamic Bank CJSC (Kyrgyzstan) has been added to Annex XLIV to Regulation No. 833;
• 22 organisations have been added to Annex XLV to Regulation No. 833, including Chinggis Khan Bank (Mongolia), India VTB, Sberbank India, as well as the cryptocurrency platforms Rapira, WhiteBird, Tradex, BitPapa, Exnode, EXMO and others.

EU Persons are prohibited from engaging, directly or indirectly, in any transactions with the entities listed. The relevant prohibition will enter into force on 13 August 2026 (with regard to the aforementioned cryptocurrency platforms — on 23 August 2026). However, the competent authorities of EU Member States may authorise transactions strictly necessary for the withdrawal of funds or the closing of accounts held at banks included in Annex XIV on or after 24 July 2026, which belong to citizens or holders of residence permits of EU Member States, EEA member states or Switzerland.

It should be noted separately that the EU has lifted restrictions on Yelo Bank (Azerbaijan), which was subject to sanctions under the previous sanctions package in April 2026.

Restrictions on third-country cryptocurrency platforms

Article 5bc has been added to Regulation No. 833, introducing a new mechanism to restrict transactions with cryptocurrency platforms based on the country in which they are established.

EU Persons shall be prohibited from engaging, directly or indirectly, in any transaction with a legal person, entity or body providing crypto-asset services or being a platform enabling the exchange or transfer of crypto assets and established in a third country listed in Annex LVII to Regulation No. 833. Annex LVII shall include only third countries that have been identified by the European Council as having systematically and persistently failed to prevent the provision of crypto-asset services, used to violate or circumvent EU sanctions.

As at the date of this legal update, the Annex does not contain any inclusions.

However, the prohibition does not apply to transactions by nationals of EU Member States who are residents of a country listed in Annex LVII and who were residing there prior to the date specified in that Annex.

B. Transportation sector

Expanding the list of sanctioned ships

As we reported earlier, under the 14th sanctions package, Article 3s was added to Regulation No. 833, which introduces restrictions on the ships listed in Annex XLII.

Under the 21st EU sanctions package, this list has been significantly expanded — 41 more ships have been added, and it currently contains more than 700 ships.

Furthermore, the grounds for including ships on this list have been expanded. It may now include not only “shadow fleet” ships and other ships directly involved in transporting Russian oil or in circumventing sanctions, but also ships which:

• provide services to vessels already on the list (for example, bunkering or tug services); or
• carry out ship-to-ship transfers with such vessels.

Expanding the list of sanctioned ports and airports

The EU has imposed sanctions on a number of transport hubs by including them in Annex XLVII to Regulation No. 833:

• ports: Olya (Astrakhan Region) and Vysotsk (Leningrad Region); and
• airports: Sheremetyevo, Ulyanovsk-Vostochny, Platov (Rostov-on-Don) and Mineralnye Vody.

EU Persons are now generally prohibited from directly or indirectly engaging in any transactions with them. A number of exemptions from the prohibition are provided, in particular, for emergency port calls, transportation of certain goods, humanitarian purposes, ensuring the safety of civilian nuclear facilities, and others.

C. Energy sector

Extension of the prohibition on the provision of LNG terminal services

From 1 January 2027, EU persons are prohibited from directly or indirectly providing liquefied natural gas (“LNG”) terminal services to:

• any natural or legal person, entity or body in Russia; and
• any legal persons that are more than 50% owned, or which are controlled directly or indirectly, by a Russian citizen or by a legal person, entity or body in Russia.

Previously, the second part of the prohibition applied only to legal persons established in the EU. The restriction now covers any company, regardless of the country in which it is established.

As a reminder, LNG terminals services include, inter alia, LNG loading and unloading, storage, shipping, regasification, reverse liquefaction and bunkering services.

Prohibition on transactions involving oil refineries

Article 5ae of Regulation No. 833 has been amended to include a new prohibition on any direct or indirect transactions with oil refineries listed in Part D of Annex XLVII.

The list may include refineries in Russia and in third countries if they are used for:

• processing or refining Russian crude oil or processing or blending petroleum products, or mineral products; or
• facilitating or engaging in the violation or circumvention of EU sanctions or otherwise significantly frustrating the application of EU sanctions.

The first refinery to be included in the new part of Annex XLVII was the refinery in Kulevi (Georgia). The prohibition on transactions with it will take effect from 25 January 2027. However, by 25 October 2026, the European Commission must assess whether the grounds for its inclusion on the list still apply. This effectively gives the refinery a period in which to address the grounds for the restrictions.

Suspension of the review of the price cap on Russian oil

From 24 July 2026 to 14 July 2027, the automatic mechanism for reviewing the price cap on Russian oil has been suspended.

By 15 January 2027, the European Commission must calculate the average market price of Russian oil for the specified period, after which the European Council will be able to adopt a separate decision to amend the price cap. In the absence of such a decision, the current price cap will continue to apply.

Potential prohibition on the sale of LNG tankers to Russian persons

Article 3qa has been added to Regulation No. 833, which imposes an obligation on EU Persons to immediately notify the competent authorities of the relevant EU Member State of any sale or other arrangement entailing the transfer of ownership of LNG tanker vessels to persons from any third country outside the EU.

The notice must contain, among other things, information on the seller and purchaser, including the shareholding and management structure, their incorporation documents, the IMO ship identification number, etc.

On the basis of the information gathered, the European Council will, by 25 October 2026, consider whether to impose a prohibition on the sale of LNG tankers to Russian persons or for use in Russia. As we reported earlier, a similar prohibition was introduced on the sale of tanker vessels used to transport crude oil and petroleum products as part of the EU’s 20th sanctions package.

D. Amendments relating to judicial proceedings

Expansion of the right to claim damages in European courts

Article 11a of Regulation No. 833 gives EU Persons the right to recover from the competent courts of EU Member States any damages (including legal costs) incurred by those persons as a result of claims brought against them in third country courts in connection with any agreement or transaction whose performance was affected by measures introduced by such Regulation.

Previously such damages could be recovered from (i) sanctioned persons and non-EU legal entities owned directly or indirectly by them by more than 50%, (ii) any Russian persons, and (iii) persons acting through or on behalf of the abovementioned persons (jointly — “Claimants”). As part of the 21st sanctions package, this provision has been expanded: EU Persons are now entitled to claim damages in European courts from any natural or legal persons from third countries (other than Russia), except for EU partner countries, who engage in the sale, supply, transfer or export of goods, technology and services, the sale, supply, transfer or export of which is prohibited under EU sanctions, the abovementioned categories of Claimants or for use in Russia.

Expansion of the prohibition on the recognition and enforcement of Russian legal acts in the EU

Previously, Article 11c of Regulation No. 833 prohibited the recognition and enforcement in EU Member States of injunctions, orders, judgments and other judicial acts issued by Russian courts under Articles 248.1 or 248.2 of the Arbitrazh Procedure Code of the Russian Federation, as well as equivalent Russian legislation.

This article has now been expanded: it prohibits the recognition and enforcement of Russian judicial and administrative decisions adopted not only on the basis of the aforementioned provisions, but also in accordance with any other Russian laws, holding EU Persons liable, whether in contract or in tort or on any other legal basis, or giving effect, directly or indirectly, to any claim, right or alleged obligation against such persons, including in the context of insolvency, bankruptcy, restructuring or analogous proceedings, in connection with any contract or transaction the performance of which has been affected, directly or indirectly, by the measures imposed under Regulation No. 833.

Possibility of obtaining an anti-enforcement injunction in European courts

As we reported previously, as part of the 20th sanctions package, Article 11ca was added to Regulation No. 833, which entitles EU Persons to obtain an anti-suit injunction from the competent court of an EU Member State, if the aforementioned categories of Claimants have initiated proceedings in a Russian court in relation to a contract or transaction, the performance of which has been affected by EU sanctions, in breach of an exclusive jurisdiction or arbitration agreement (pursuant to Articles 248.1 — 248.2 of the Arbitrazh Procedure Code of the Russian Federation or equivalent Russian legislation).

This provision has now been expanded: EU Persons are also entitled to obtain an anti-enforcement injunction from a competent court of an EU Member State, i.e. an injunction prohibiting any attempt to recognise and enforce, in any jurisdiction, a Russian court decision adopted in the context of the abovementioned proceedings.

E. Other measures

The EU also adopted a number of other measures, amending Regulation No. 833 accordingly, in particular:

• Annex IVThis Annex lists goods and technology which might contribute to Russia’s military and technological enhancement or to the development of its defence and security sector. includes 51 new companies from Russia, China, Turkey, India, the UAE, Kyrgyzstan and Kazakhstan. EU Persons are prohibited from directly or indirectly selling, supplying, transferring or exporting goods and technology, including dual-use goods, specified in Annex VII, to such persons;
• new restrictions have been imposed on the export of certain goods to Russia (in particular, nickel powders and nickel alloys, certain aviation products intended for unmanned aerial vehicles, etc.) and imports from Russia (in particular, copper, nickel and lead ores, unwrought zinc, etc.);
• competent authorities of EU Member States have been granted the power to authorise the acquisition, import or transfer of Russian crude oil and petroleum products that have been seized or confiscated in the course of national administrative or judicial proceedings, provided that the goods in question remain under the control of public authorities and that the relevant transactions do not result in the provision of funds or economic resources to Russian persons;
• provision is made for the temporary storage within the EU and the placement under a free-zone procedure of Russian oil and petroleum products that have been seized or confiscated by the authorities of an EU Member State and remain under their effective control;
• until 31 March 2028, the maritime transport to Japan and South Korea of LNG originating in the Sakhalin-2 project, as well as the provision of related technical, brokering and financial services, is permitted. Furthermore, until 25 July 2027, the relevant prohibition does not apply to supplies of Russian LNG to third countries under long-term contracts concluded before 24 February 2022 with a duration of more than one year and which have not subsequently been amended, except for certain permitted technical amendments. This last exemption applies in a given year up to the yearly volume of LNG originating in or exported from Russia in 2025 by the relevant EU Person, and may continue to apply beyond 25 June 2027 for subsequent periods, subject to annual review by the European Council;
• the deadline has been extended until 31 December 2027, during which EU Persons intending to sell their Russian business and/or withdraw from the Russian market may obtain authorisation from the competent authorities of EU Member States to perform certain actions which are generally prohibited by EU sanctions (for example, the sale and transfer of certain prohibited goods and technology, the provision of certain prohibited services, etc.); and
• an exemption has been added to the prohibition on the provision of services directly related to tourism activities in Russia — this prohibition does not apply to the provision of computerised reservation systems.