EU Prepares 21st Sanctions Package Targeting Russia's Shadow Fleet, Banks

The EU is preparing its 21st sanctions package against Russia, expected in late June or early July. This follows Hungary's change of government, which removed previous vetoes. EU officials aim to leverage Russia's deepening economic strain and Ukraine's improved position to increase pressure.

The package will focus on Russia's shadow fleet of aging tankers, Russian banks, financial institutions, military-industrial companies, and firms selling stolen Ukrainian grain. Sanctions against senior members of the Russian Orthodox Church, including Patriarch Kirill, previously blocked by Hungary, are now back on the table. The previously stalled maritime-services ban may also be revisited, despite past opposition from Malta and Greece.

Chief EU diplomat Kaja Kallas and European Commission President Ursula von der Leyen are advocating for a substantial package. Kallas noted new momentum for sanctions after the Hungarian elections, urging a review of previously stalled measures and the introduction of new ones. EU officials believe Russia's economy is experiencing its worst state since the war began, describing it as a «static inflationary shock.»

Separately, the EU today sanctioned nearly two dozen Russians involved in the abduction of Ukrainian children. This action precedes the broader 21st package, which is still in early consultation.