EU Finalizes 21st Sanctions Package Against Russia, Capping Seaborne Oil Prices at $44.10

The European Union has agreed on its 21st sanctions package against Russia, capping seaborne oil at $44.10 per barrel for the next 12 months while granting exemptions to Greece.

New Seaborne Oil Price Cap and EU Agreement

Originally, the price limit was set to be frozen for six months. The agreement among ambassadors means that for the next 12 months, Russian oil transported by sea cannot be sold at a price higher than $44.10 per barrel.

European Council President Antonio Costa welcomed the agreement on the 21st sanctions package against Russia. He emphasized that the European Union has taken another step to increase pressure on Russia.

Costa wrote online that the 21st sanctions package covers key sectors: energy, financial services, cryptocurrencies, and trade, adding that support for Ukraine and a fair, lasting peace remains unwavering.

The ambassadors’ agreement must still be officially confirmed by capitals through a written procedure. If member states had failed to reach an agreement, the price would have been updated proportionally to current higher raw material prices on global markets, generating greater revenues for Russia to fund its war against Ukraine.

Greece Secures LNG Transfer Exemptions

Negotiations over the 21st package were prolonged. When agreement could not be reached a week ago as the deadline for updating the Russian oil price expired, the price was frozen for several days to give ambassadors time for further negotiations.

Greece held out the longest, fighting to preserve the ability to transport Russian liquefied natural gas (LNG). Ultimately, Athens managed to secure an exception.

An EU diplomat told journalists that a compromise was reached on the disputed issue of LNG transfers to third countries. According to the diplomat, the exemption concerns the transfer of LNG to third countries and related purchases under contracts concluded before February 24, 2022, prior to the Russian invasion of Ukraine.

Any expansion of these transfers by EU operators is restricted, and member states in the EU Council will review this exemption annually.

Greece sought to loosen the ban on selling Russian LNG, which member states had already agreed upon in the 19th sanctions package. That package envisions a total ban on importing LNG from Russia starting in 2027, but the government in Athens feared it would also block the transport of this commodity to third countries.

According to the Financial Times, the Greek operator Dynagas transported over 10 million tons of Russian LNG from the beginning of 2025 and holds long-term supply contracts with third countries. Fighting to preserve the transport capability, Greece argued that applying the LNG import ban to third-country transfers was never discussed during the drafting of the 19th sanctions package.

France and Italy Block Visa Ban for Veterans

The 21st package was initially intended to include an entry ban to the EU for individuals who served in the Russian armed forces since the beginning of the war against Ukraine. However, member states failed to agree, and the package only includes a commitment to take necessary measures to restrict visas for former Russian soldiers.

The strongest opposition to the EU entry ban for veterans of the war against Ukraine came from France and Italy, which host the most Russian tourists. Both countries feared placing undue pressure on their consular services processing Russian visa applications.

On July 13, EU High Representative for Foreign Affairs and Security Kaja Kallas announced new individual sanctions targeting individuals involved in the war against Ukraine. The EU blacklisted an additional 250 individuals and entities, stripping them of EU entry rights, freezing their assets, and barring them from conducting any business activity within the bloc.

Lavrov and Rubio Meet in Manila

On Thursday, July 23, a meeting between Russian Foreign Minister Sergey Lawrow and US Secretary of State Marco Rubio concluded in Manila, the capital of the Philippines. The main topic was the situation in Ukraine, with both sides reportedly discussing peace proposals, though specific details of the proposals remain unknown.

Reporting from Brussels by Magdalena Cedro (PAP)