EU ambassadors agree 21st sanctions package against Russia, freeze oil price cap and grant Greece LNG exemption

The agreement

After weeks of delay caused by a Greek veto, EU ambassadors reached a political agreement on the 21st sanctions package against Russia on Thursday morning. The deal was struck during a final round of talks that followed "heated" discussions on Wednesday, according to diplomats. The package includes a 12-month freeze on the Russian oil price cap, a one-year exemption for Greek LNG shipments to non-EU countries, and measures targeting crypto companies, banks and oil traders helping Russia evade sanctions. Technical work will now be concluded, and a written procedure for adoption will be launched on Thursday afternoon, four EU diplomats confirmed.

Greek LNG carve-out

Greece had blocked the entire sanctions round to secure an exemption from a planned phase-out of transporting Russian gas, due to take effect on 1 January 2027. Athens obtained a one-year exemption allowing the transfer of Russian liquefied natural gas to third countries, with automatic renewal, provided the contract was signed before Russia's full-scale invasion of Ukraine. The carve-out protects Dynagas, a large Greek shipping company that specialises in transporting LNG from Russia's Yamal fields. The Greek government sought the exemption despite having agreed to the phase-out measure in October 2025. One EU diplomat said member states showed solidarity with Greece and expected Athens to reciprocate in the future.

Oil price cap frozen

The EU agreed to freeze its price cap on Russian crude oil at $44.10 per barrel for 12 months. The cap was set to rise automatically in August due to a six-month recalculation mechanism and rising oil prices driven by the blockade of the Strait of Hormuz amid the war in Iran. The automatic increase had heaped pressure on the bloc to find an agreement, as it would have allowed Russia to benefit from higher oil revenues. By freezing the cap, the EU aims to prevent that outcome. The freeze was a central element of the package, alongside the LNG exemption.

Sanctions on individuals and evasion

The package includes the highest number of sanctions on individuals in any EU package in the last four years, an EU diplomat said. It also targets crypto companies, banks and oil traders that help Russia evade existing sanctions. A plan to ban Russian ex-combatants from travelling to the EU has been delayed, but there is a pledge to bring forward the necessary measures.

Adoption and reaction

Ireland's Minister for Foreign Affairs Helen McEntee, whose country holds the rotating EU presidency, welcomed the package. She said it further targets Russia's revenue streams, impedes its shadow fleet and disrupts its supply chains.

This package further targets Russia's revenue streams, impedes its shadow fleet and disrupts its supply-chains. Europe stands with Ukraine against Russia's brutal war of aggression.

The written procedure for formal adoption will be launched on Thursday afternoon, diplomats confirmed.