European Union member states agreed on Thursday to introduce a new round of sanctions targeting Russia, aiming to sustain economic pressure amid ongoing conflict in Ukraine. The measures, agreed after weeks of negotiation, focus on energy and banking sectors, reflecting the bloc’s intent to weaken Russia’s capacity to finance its military operations as Ukraine gains momentum on the battlefield.

European Commission President Ursula von der Leyen emphasized that the sanctions continue to undermine the economic foundations supporting Russia’s war effort. However, reaching consensus was complicated by competing national interests, particularly concerning the transportation of Russian liquefied natural gas (LNG). Greece, a significant player in global shipping, secured a one-year exemption for its shipping industry. This carve-out permits Greek operator Dynagas to continue transporting Russian LNG to countries outside the European Union under contracts established before 2022, when the invasion of Ukraine commenced in February of that year. The exemption prevents new EU-based contracts and will be subject to annual review, according to two European diplomats who spoke anonymously.

The sanctions package marks the EU’s 21st round of restrictive measures against Russia since the invasion began. It includes an expansion of the banking transaction ban to an additional 32 Russian banks, reinforcing earlier sweeping restrictions on the sector. The EU also maintained the existing price cap on Russian oil for another year, despite expectations it would rise due to increased global rates influenced in part by U.S. actions against Iran. Some details of the sanctions remain confidential as legal and technical work continues.

This consensus-building process highlights ongoing challenges within the EU when addressing Russia’s economic activities, particularly as efforts by the United States to sustain pressure appear inconsistent. U.S. Secretary of State Marco Rubio stated on Thursday that Washington remains prepared to assist in negotiations for a peace agreement if conditions allow, though he refrained from endorsing the EU view that Ukraine is gaining decisive advantage on the battlefield. Rubio made these remarks following a meeting with Russian Foreign Minister Sergei Lavrov in Manila at a forum involving Southeast Asian nations.

Rubio acknowledged the substantial costs the war has inflicted on both Russia and Ukraine while emphasizing U.S. readiness to support a peaceful resolution. In the same discussion, he clarified that the U.S. is selling arms to Ukraine rather than providing them freely, noting that some systems funded by European governments continue reaching Kyiv under a NATO-mediated arrangement.

From Moscow’s perspective, Foreign Minister Lavrov condemned Western arms supplies to Ukraine as unacceptable, accusing European nations of pursuing destabilizing policies aimed at achieving a strategic defeat of Russia. Kremlin spokesman Dmitry Peskov expressed cautious skepticism about the diplomatic exchanges, stating there was no indication of new momentum toward resolution despite ongoing contact.

At the same time, Russia faces escalating impact from Ukrainian long-range drone strikes, including attacks on commercial targets such as Wildberries warehouses. These disruptions, alongside fuel shortages, have complicated the Kremlin’s efforts to shield its population ahead of September’s parliamentary elections.

Within the EU, the search for additional sanctions measures has become increasingly complex as economic interests among member states influence decision-making. A proposed ban on Russian fish imports was reportedly removed from the latest package after opposition from fishing sectors in countries including Germany and Portugal. Lithuanian Foreign Minister Kestutis Bartu underscored this dynamic, noting that economic considerations of member states play a growing role in shaping sanctions discussions.