EU extends Russia sanctions while 21st package talks stall

The European Council has extended the bloc’s existing economic sanctions on Russia for a further year, now running until 31 July 2027. At the same time, EU ambassadors are struggling to reach agreement on a new 21st sanctions package.

Negotiators face several stumbling blocks before the 15 July deadline that would trigger an automatic review of the maritime oil price cap. The Commission proposes keeping the cap at $44 per barrel until January 2027 or establishing a new fixed level, while rising Urals prices could otherwise give Moscow relief. Disagreements also cover a ban on LNG‑tankers, a first‑ever restriction on Russian fish imports (cod and pollock), and a proposal to bar entry to former Russian soldiers who took part in the Ukraine invasion.

A further point of contention is the inclusion of Patriarch Kirill, head of the Russian Orthodox Church, and billionaire Vagit Alekperov, founder of Lukoil, on the sanctions blacklist. Bulgaria’s new government, led by Prime Minister Rumen Radev, openly opposes sanctioning Kirill, and Hungary previously blocked his listing on religious‑freedom grounds. The United States Treasury has meanwhile extended a licence allowing limited transactions with Lukoil.

Member states such as Germany, France, Poland and the Netherlands have warned that a ban on Russian cod and pollack could disrupt supply chains. The ongoing debates reflect deep divisions within the EU over how to tighten pressure on Moscow while managing economic repercussions for the bloc.