Brussels, Belgium. European Union envoys have agreed on a 21st sanctions package against Russia over its war in Ukraine, targeting the banking sector and granting an exemption for EU companies to transfer Russian liquefied natural gas to third countries.
LNG transfer exemption
The package, described by the EU as its largest in four years, includes a one-year exemption with automatic renewal for EU companies transferring Russian LNG to third countries. The compromise followed demands from Greece, whose approval was required because EU sanctions need unanimous backing.
A planned ban on transfer services for Russian LNG had been due to take effect on January 1. Athens said such a measure would shift market share outside Europe without affecting Russian revenues.
EU imports of Russian LNG will still be banned from January 1.
Greece dominates Europe’s LNG carrier market and is among the world’s largest players, competing with Japan, China and the United States.
“Member states showed solidarity with Greece and it’s expected that Greece will do the same with others in the future,” one EU diplomat said.
Financial restrictions
EU foreign policy chief Kaja Kallas said on X that the package was the bloc’s “largest round in four years, totalling 218 listings.”
The listed entities and individuals will face sanctions including asset freezes, travel bans and transaction bans.
The measures target Russia’s banking sector in an effort to increase pressure on its financial system at what the EU considers a vulnerable period for the Russian economy. Russian companies have maintained trade and financial flows through small or regional lenders and cryptocurrency networks.
“We’ve hit more than a hundred banks and crypto operators, over 40 shadow fleet vessels, and several oil refineries in Russia and Belarus, who help keep Moscow’s war going,” Kallas said.
One diplomatic source said the package designates 94 Russian financial institutions, mainly banks, as well as Moscow’s stock exchange. The listings bring the total number of sanctioned banks to more than 100, representing more than half of Russia’s 213 internationally connected lenders.