The European Union has approved its 21st package of sanctions against Russia after weeks of negotiations, but only after significantly softening several proposed measures. According to multiple media reports cited by RT, the final agreement includes exemptions sought by member states concerned about the economic impact of tougher restrictions, highlighting growing divisions within the bloc over sanctions policy
*An INR Report based on reporting by RT HERE
Greece Secures LNG Shipping Exemption
The biggest change to the sanctions package concerns the transportation of Russian liquefied natural gas (LNG).
According to RT, Greece successfully argued that banning EU shipping companies from transporting Russian LNG to third countries would significantly damage its maritime industry. Greece is home to one of the world's largest LNG shipping fleets, including vessels operating under long-term contracts linked to Russia's Yamal LNG project.
Under the compromise reportedly brokered during negotiations, EU companies will continue transporting Russian LNG under a renewable 12-month exemption, subject to annual review. The agreement also freezes planned adjustments to the G7 price cap on Russian oil for 12 months.
Other Measures Also Softened
The final package was also diluted in several other areas following objections from member states.
A proposal to broadly ban Russians with military service from entering the EU was narrowed substantially after opposition from France, Italy and Greece. The final measure reportedly applies only to short-stay visas and focuses on individuals directly involved in military operations rather than all former servicemen.
Plans to phase out Russian fish imports were also dropped after resistance from Germany, Poland and Portugal, while efforts to sanction Patriarch Kirill, head of the Russian Orthodox Church, were reportedly removed following objections from Bulgaria and Italy.
Economic Interests Emerging
Despite the concessions, the sanctions package still expands restrictions on Russian banks, cryptocurrency platforms, oil traders, hundreds of vessels alleged to be part of Russia's so-called "shadow fleet", and approximately 250 individuals and organisations accused of supporting Russia's military operation in Ukraine.
However, diplomats quoted in the report suggested the negotiations demonstrate that sanctions are increasingly colliding with the economic interests of individual EU member states. Several analysts described the latest negotiations as evidence that maintaining unanimous support for additional sanctions is becoming more difficult as the conflict continues.
Does This Affect New Zealand?
Although the sanctions are aimed at Russia, their effects continue to ripple through global energy and shipping markets. Changes affecting LNG transport, oil pricing mechanisms and international shipping can influence fuel costs, freight rates and inflation worldwide, including in New Zealand.
For a trade-dependent nation that imports much of its refined fuel and relies heavily on international shipping, developments in European energy policy remain relevant. Any disruption to global LNG markets or shipping capacity has the potential to affect transport costs, business expenses and consumer prices.
The report also highlights the growing challenge governments face in balancing geopolitical objectives with domestic economic interests as sanctions regimes become increasingly complex.
Source: RT — "EU caves in on new Russia sanctions – media" (Published 23 July 2026)