EU Imposes Sanctions Package on Russia in July 2026

• The EU has introduced a new sanctions package against Russia, including measures aimed at curbing Moscow's energy export revenues.
• The package targets Russian oil and gas exports, as well as other sectors such as finance and technology.
• Companies operating in the energy sector, finance, and technology need to adjust their contracts and risk assessments due to the new restrictions.

Curbing Russia's energy export revenues is the most effective way to inflict significant costs on the country.

The European Commission has introduced a new sanctions package against Russia, which includes measures aimed at curbing Moscow's energy export revenues. The package is part of the EU's ongoing efforts to impose costs on Russia for its actions in Ukraine. According to the Commission, curbing Russia's energy export revenues is the most effective way to inflict significant costs on the country. This approach has been a key component of the EU's sanctions strategy against Russia since 2014.

The new package includes measures that target Russian oil and gas exports, as well as other sectors such as finance and technology. The Commission has also introduced restrictions on the sale of certain goods and technologies to Russia, including dual-use items and equipment for the oil and gas industry.

The EU's sanctions package against Russia is based on a series of regulations and directives that have been adopted by the European Parliament and Council. The most relevant legislation in this area is not Regulation (EU) 2026/1234, as that regulation concerns the authorisation of vermiculite as a feed additive. The Commission has also relied on other legislation; however, Directive (EU) 2026/5678, which is stated to set out rules for the export, transfer, brokering and transit of dual-use items, does not appear to be the correct legislation for this purpose. The new package is designed to be compatible with existing regulations and directives.

The EU's sanctions package against Russia has significant implications for international trade and supply chains. Companies operating in the energy sector, as well as those involved in finance and technology, need to be aware of the new restrictions and take steps to adjust their contracts and risk assessments accordingly.

The Commission has emphasized that the new package is designed to be flexible and adaptable to changing circumstances, allowing for adjustments to be made as needed. However, companies will still need to carefully review the new regulations and ensure compliance with all applicable laws and regulations.

A lawyer or compliance officer should watch for potential disruptions to international trade and supply chains due to the new EU sanctions, which may require adjustments to existing contracts or risk assessments.

Source: Original reporting via European Commission Questions and answers