EU agrees 21st Russia sanctions as Ukraine hits economy

EU ambassadors reached a political agreement on a 21st sanctions package targeting Moscow. The new measures impose a 12-month freeze on the Russian oil price cap. They also contain a one-year exemption, subject to automatic renewal, permitting the transfer of Russian liquefied natural gas to third nations. "Member states showed solidarity with Greece and it's expected that Greece will do the same with others in the future," one EU diplomat said.

The dual approach of freezing the oil cap while exempting LNG transfers underscores Europe's delicate balancing act. It maintains financial pressure on Moscow's crude revenues without disrupting the flow of gas that still relies on European-linked infrastructure and shipping. The explicit mention of Greece highlights the ongoing role of member states' commercial interests in shaping the bloc's punitive measures.

These sanctions coincide with a marked shift in Ukraine's military strategy toward economic targets. Ukrainian forces struck two more warehouses belonging to Russian online retailer Wildberries in the southern cities of Krasnodar and Nevinnomyssk. Tatyana Kim, the company's co-founder and head, confirmed the attacks.

Wildberries is often described as Russia's Amazon and ranks among the country's largest employers. Targeting its logistics network represents a deliberate effort to disrupt Russia's consumer economy and bring the conflict's realities to ordinary citizens.

This economic and military pressure unfolds as diplomatic avenues remain blocked. US Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov met for roughly 30 minutes in Manila. Rubio stated that "we want a peace deal on Ukraine," but noted Russia continues to refuse giving up territory.

Lavrov told Rubio that it was "unacceptable" to continue arms deliveries to the "Kyiv regime." He also criticised what he called "a destabilising policy by European countries that are always seeking to inflict a 'strategic defeat' on Russia." Lavrov reiterated Moscow's commitment to territorial terms proposed at a 2025 Alaska summit, which Kyiv has rejected and Washington says was never finalised.

Ukrainian President Volodymyr Zelensky suggested these deep strikes are compounding Moscow's internal political strains. He claimed a "very toxic atmosphere" surrounds Putin, with his inner circle increasingly blaming him for the war's failures. "His retinue understands this - they are signalling it to us and to our partners," Zelensky wrote.

The broader conflict continues to escalate. Russia struck military cargo infrastructure in Odesa, while both nations have recently targeted dozens of vessels, including oil tankers and cargo ships, in the Black Sea and Sea of Azov. Overnight, Russian air defence claimed to have downed 223 Ukrainian drones, though falling debris killed two people, including a three-year-old child in Voronezh, and injured five others across Crimea and southern Russia.