Why the EU Still Can’t Agree on Its Next Round of Russia Sanctions

by | Jul 21, 2026 | Energy

Why the EU Still Can’t Agree on Its Next Round of Russia Sanctions

The European Union’s proposed 21st round of sanctions against Russia has stalled despite expectations for smoother approval following the departure of Hungarian Prime Minister Viktor Orban in May. The European Commission submitted its comprehensive package in early June, but reaching unanimity among all 27 member states has proven difficult, causing negotiations to extend well past a self-imposed July 15 deadline.

The package has been substantially weakened through repeated concessions to individual member states. A proposed import ban on Russian fish was entirely scrapped after Germany, Poland, and Portugal sought exemptions, citing the use of Russian fish in domestic food processing. An automatic ban on Russian ex-combatants entering the Schengen zone was similarly stripped down to merely a commitment to seek future changes to visa codes, as Mediterranean nations including France, Italy, and Spain resisted measures that could impact tourism revenue.

Tensions have also emerged over an oil price cap on Urals crude, Russia’s primary export blend. The European Commission initially proposed freezing the cap at $44.10 per barrel for six months, but negotiations have progressively narrowed this to just seven days through July 23. Complicating matters further, Greece has demanded an open-ended exemption to a previous October 2025 agreement banning EU shipments of Russian liquefied natural gas to non-EU destinations, arguing that restrictions would simply redirect business to non-EU companies without reducing Russian export volumes.

Austria has also blocked approval, demanding that frozen Russian assets in the country be seized and used to compensate its Raiffeisen bank for losses stemming from Russian court actions. Other member states have opposed this approach, fearing it could encourage the Kremlin to target additional European companies operating in Russia. Bulgaria vetoed the inclusion of three individuals in the sanctions list, including Patriarch Kirill of the Russian Orthodox Church and the head of Russia’s largest private oil company.

The package is expected to retain blacklistings of Russian banks and shadow fleet vessels, along with asset freezes and visa bans for over 250 Russian individuals and entities. EU ambassadors plan to meet July 22 to finalize the agreement.

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