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EU Fails to Agree 21st Russia Sanctions Package as Member States Seek Carve-Outs

Unanimity in EU foreign policy is allowing individual capitals to extract exemptions that are weakening measures designed to block Russian revenue and sanctions evasion.

Overview

  • As of Monday July 20 the 21st sanctions package remains unresolved with EU ambassadors scheduled to meet on Wednesday July 22 and the Urals oil price-cap frozen only until July 23.
  • Greece is conditioning its approval on an open-ended exemption for Greek firms to keep transporting Russian LNG to non-EU buyers and the European Commission has launched a rapid economic impact assessment of that carve-out.
  • Austria is pressing for compensation for Raiffeisen over losses in Russia and Brussels may remove or redraft Raiffeisen-related provisions to get the package over the line.
  • Proposals to tighten rules on crypto channels and third-country facilitators are meeting pushback from member states, which risks leaving a gap in efforts to stop Russia using digital assets for international payments.
  • Diplomats say the package has been heavily watered down — nicknamed the 'Emmental' — showing how the EU unanimity rule lets national economic interests dilute blacklistings, import bans and visa restrictions and could blunt pressure on Moscow.