Brick by brick, the EU is dismantling Russia's war economy

Today, the EU adopted the 21st package of restrictive measures designed to further weaken Russia's war economy and its ability to sustain its war of aggression against Ukraine. It is the biggest listings package in the last four years.

Last week, the EU already approved additional restrictive measures targeting those responsible for war crimes against Ukrainian prisoners of war and civilian detainees, repression inside Russia and malicious cyber activities against the European Union and its partners, as well as on actors involved in drone manufacturing, as a swift response to the deadly strikes by Russia on Kyiv at the beginning of July.

Together, these decisions reflect the EU's comprehensive approach: weakening Russia's ability to wage war, defending international law, protecting European security and ensuring that those responsible for aggression, repression and cyberattacks are held accountable.

1. The 21st sanctions package: increasing the pressure on Russia's war economy

The 21st package of restrictive measures against Russia's war machine comes with the biggest listings package adopted by the European Union in four years. The package further weakens the economic and financial foundations of Russia's war economy while increasing the cost of sustaining its war of aggression against Ukraine.

It combines sweeping economic measures with the largest batch of individual listings in the past four years, targeting the sectors that most directly support Russia's military capabilities. In particular, the package strikes at the financial backbone of Russia's war machine, tightening restrictions on Russia's banking and financial sectors, including the listing of the Moscow Stock Exchange and the Deputy Governor of Russia's Central Bank.

As High Representative Kaja Kallas said:

"Today's package comes with the highest number of designations in the last four years. It is first and foremost a financial and economic package, chipping away yet another brick from the foundations of Russia's economy."

The new measures significantly tighten restrictions on Russia's banking and financial sectors, expand action against sanctions circumvention by targeting the cross-border A7 payment network and additional crypto-related service providers. Measures on crypto include a third-country ban for crypto-asset services, which will act as a deterrent for third countries hosting crypto platforms facilitating sanctions circumvention.The package also strengthens measures targeting the shadow fleet and oil revenues, listing more vessels , as well as refineries and oil traders in Russia and Belarus. It pauses the automatic adjustment of the oil price cap mechanism until mid-2027, to ensure that Russia's profits from oil sales remain contained, despite the exceptional situation on global oil markets. The package also broadens pressure on Russia's sources of revenue by targeting major actors in the gold, diamond, mining and metallurgy sectors.

Measures adopted also further constrain Russia's military industrial complex, including the production and supply of long-range drones, introduction of new export restrictions on technologies and components, and tighter export control measures related to 51 additional entities that support Russia's defence industry.

Today's decision also lays the foundation for a future comprehensive visa ban for combatants and ex-combatants of the Russian armed forces and other proxy groups, participating in the Russian war of aggression in Ukraine.

Together, these measures further reduce Russia's ability to finance its war, sustain its military production and circumvent existing sanctions.

European Union

1. Holding perpetrators accountable for war crimes and human rights violations

The 21^st package comes on top of the measures adopted last week against those responsible for serious human rights violations committed against Ukrainian prisoners of war and civilian detainees.

Those listings target officials responsible for torture, inhuman treatment, sexual violence and arbitrary killings committed in detention centres both in Russia and in the temporarily occupied territories of Ukraine.

These sanctions also include detention facilities where systematic abuse of Ukrainian prisoners and civilians has been documented.

The European Union continues to condemn in the strongest terms Russia's violations of international humanitarian law and reiterates that those responsible must be held accountable.

These measures complement broader international efforts to ensure accountability for war crimes and other grave violations of international humanitarian law committed during Russia's war of aggression against Ukraine.

1. Countering repression inside Russia

Last week's decisions also respond to the growing repression of civil society and democratic freedoms inside Russia.

The EU imposed sanctions on companies and individuals responsible for enabling state surveillance and digital repression, including entities developing technologies used to monitor communications, restrict access to information and facilitate the persecution of journalists, political opponents and civil society.

The measures target companies involved in surveillance systems that provide Russian authorities and security services with extensive capabilities to monitor internet and mobile communications.

By targeting those enabling digital repression, the EU reaffirms its commitment to defending human rights, freedom of expression and the rule of law.

1. Exposing Russia's malicious cyber ecosystem: the EU adopts its biggest cyber sanctions package

On 13 July 2026, the High Representative issued a statement on behalf of the EU exposing Russia's malicious cyber ecosystem-including the role of the Russian state and its network of proxies-and announcing the EU's largest cyber sanctions package to date, targeting individuals and entities responsible for carrying out, enabling or facilitating malicious cyber activities in support of Russia's strategic objectives.

"We strongly condemn Russia's behaviour and misuse of this cyber ecosystem, targeting public services and critical infrastructure, causing disruptions and financial losses."

EU High Representative, Kaja Kallas

This action marks a significant step in the EU's response to Russia's malicious cyber activities. By exposing and targeting Russia's entire malicious cyber ecosystem, a network of state actors, proxies and enablers that support Russia's objective to destabilise the EU, its Member States and international partners, the EU is significantly raising the costs of Russia's malicious behaviour. The EU publicly holds the 16th Centre of Russia's Federal Security Service (FSB) responsible for a wide range of malicious cyber operations against EU Member States and partner countries. These activities have included cyber espionage and sabotage of critical infrastructure.

In addition to exposing the role of Russia's intelligence services, the EU is also responding to the broader threat posed by Russia's cyber ecosystem, targeting the network of cybercriminals, hacktivists and private companies operating under Russia's instruction, direction or control, or in support of its strategic objectives.

Alongside this coordinated attribution, the Council imposed restrictive measures on nine individuals and four entities linked to Russia's cyber ecosystem, including intelligence officers, cybercriminals, hacktivists and companies enabling malicious cyber activities. These measures raise the costs of Russia's malicious cyber activities, disrupt the ecosystem that enables these activities and ensure those responsible are held accountable.

For the first time, these cyber sanctions were adopted in parallel with the United Kingdom under our respective cyber sanctions regimes, demonstrating our shared commitment to holding Russia and its cyber ecosystem accountable.

The EU will continue to strengthen its cooperation with international partners in support of a global, free, open, stable and secure cyberspace.

Webstory - Exposing Russia's malicious cyber ecosystem: the EU adopts its biggest cyber sanctions package

Background

Since the beginning of 2026 alone, the EU has designated up to 500 individuals and entities in seven rounds of sanctions, steadily increasing the pressure on Russia's war economy and those enabling its aggression.

European Union sanctions