The European Union has formally adopted its 20th package of sanctions against Russia and approved a €90 billion financial support loan for Ukraine, overcoming months of blockage by the government of Hungary.
The new sanctions package introduces sweeping measures targeting Russia’s energy, financial, and military-industrial sectors, marking one of the most extensive rounds of restrictions imposed in the past two years. A total of 120 additional individuals and legal entities have been added to the sanctions list, making it the largest such designation package in recent years.
The EU has imposed 36 new restrictions on Russia’s energy sector, covering both extraction and refining activities, including oil production, processing, and transportation. In a further move to curb sanctions evasion, an additional 46 vessels have been banned from entering EU ports and accessing a wide range of maritime services, bringing the total number of sanctioned ships to 632. These measures primarily target tankers from non-EU countries that form part of Russia’s so-called “shadow fleet,” used to bypass the oil price cap, support the Russian energy sector, transport military equipment, or move stolen Ukrainian grain.
The package also introduces mandatory due diligence requirements for the sale of tankers, a step the EU says will make it more difficult for Russia to expand its shadow fleet. Technical services and other forms of assistance to Russian liquefied natural gas (LNG) tankers and icebreakers are now prohibited. Additionally, starting from January 2027, it will become illegal to provide LNG terminal services to Russian entities or those owned or controlled by Russian operators or citizens.
Financial restrictions have also been tightened. The EU has banned transactions with 20 Russian banks and prohibited dealings involving the cryptocurrency RUBx. Transactions with two Russian ports, Murmansk and Tuapse, as well as the Karimun oil terminal in Indonesia have also been banned, as these locations are believed to facilitate circumvention of the oil price cap mechanism.
The sanctions further target Russia’s military-industrial complex, with 58 companies and associated individuals blacklisted for involvement in the development and production of military goods, including drones. The EU has also sanctioned 16 entities based in China, the United Arab Emirates, Uzbekistan, Kazakhstan, and Belarus for supplying dual-use goods or weapons systems to Russia.
In addition, 60 new entities will face stricter export controls on items that could contribute to the technological advancement of Russia’s defense sector. Some of these entities are also located in third countries, including China (with a particular focus on Hong Kong), Turkey, and the United Arab Emirates.
For the first time, the EU has activated a new anti-circumvention instrument, banning the export of computer numerical control (CNC) machine tools and radio equipment to Kyrgyzstan due to the high risk of re-export to Russia.
Commenting on the decision, EU High Representative Kaja Kallas said the bloc had “finally broken the deadlock.”
“Alongside the €90 billion loan for Ukraine, we have also adopted the 20th sanctions package. The EU will provide Ukraine with everything it needs to hold its ground, while we continue to pressure those enabling Russia’s illegal aggression. Russia’s war economy is under increasing strain, while Ukraine receives a major boost. We must maintain this pressure until [Vladimir Putin] understands that his war will lead nowhere,” Kallas said.
On the same day, the Council gave final approval to the €90 billion loan for Ukraine, which had been agreed in December 2025. The decision enables the European Commission to begin disbursing funds from the second quarter of 2026.
The interest-free loan, intended to support Ukraine through 2026–2027, will be financed through borrowing on EU capital markets and backed by the EU budget. It is expected to be repaid using reparations owed by Russia to Ukraine. Until such reparations are secured, Russian assets will remain frozen, with the EU reserving the right to use them to service the loan.
Hungary, along with the Czech Republic and Slovakia, will not participate in providing guarantees for the loan. The decision on its implementation was adopted with the support of 24 EU member states under an enhanced cooperation mechanism.
