The EU’s 21st Sanctions Package Against Russia Is Full of Holes

The failure to reach a consensus by the July 15 deadline highlights the persistent friction within the bloc. Proposals to ban imports of Russian fish, such as cod and haddock, were abandoned after Germany, Poland, and Portugal sought exemptions for domestic food processing. Similarly, efforts to restrict Schengen visa access for Russian ex-combatants stalled due to Mediterranean countries prioritizing tourism revenue, resulting in a vague commitment to future policy reviews rather than immediate action.

Energy policy remains a primary flashpoint. A push to freeze the price cap on Urals crude at $44.10 per barrel was reduced to a mere seven-day extension, pushing the final decision to July 22. This issue is now entangled with Greece’s demand for exemptions on transporting Russian liquefied natural gas, a move Athens claims is necessary to prevent business shifting to non-EU competitors. Meanwhile, Austria continues to block the package, demanding compensation for Raiffeisen Bank’s losses in Russia. Vienna wants Brussels to seize frozen Russian assets to cover the bank’s 2.5 billion euro claim, a proposal that has drawn sharp criticism from other member states wary of setting a precedent for further Russian retaliation against European firms.

While the final iteration will likely include sanctions against Russian banks and elements of the shadow fleet, even the blacklisting of individuals has faced resistance. Bulgaria successfully vetoed the inclusion of Patriarch Kirill, Lukoil chief Vagit Alekperov, and billionaire Iskandar Makhmudov, further diluting a package that was initially intended to signal a unified European front.