EU foreign ministers gave strongest support to an option of banning trade with illegal Israeli settlements, High Representative Kaja Kallas said on 13 July 2026 after a Foreign Affairs Council meeting in Brussels. The option, one of several presented by the European Commission following a June European Council request, includes a full or partial ban on imports of settlement products, stricter export licensing requirements, and possible use of tariffs. Kallas stressed the measures target settlements, not Israel, and tasked EU ambassadors to take the work forward, with a possible extraordinary meeting on the issue.
On Ukraine, ministers adopted sanctions targeting Russia's prison system and agreed to increase support for NGOs helping victims and their families, launching a new informal group to coordinate international action for the release of Ukrainian civilian detainees. Kallas noted this was the ninth consecutive Foreign Affairs Council imposing new sanctions on Russia. The measures, together with the upcoming 21st sanctions package, hold over 250 listings, described as the biggest round of individual sanctions since Russia's 2022 invasion. For the first time, the EU and the UK simultaneously sanctioned the broader ecosystem enabling Russian cyber-attacks, including criminals, hacktivists, and companies operating on Moscow's behalf, in what Kallas called the largest EU cyber sanctions package ever adopted. The EU will also summon a Russian representative over Moscow's cyber campaign.
Ministers also gave a go-ahead for a new EU mission to support Armenian authorities in dealing with cyber threats, disinformation, and countering illicit financial flows, following a major economic support package for Armenia announced last week. An additional €120 million under the European Peace Facility was adopted for Moldova, the biggest support package to date, to strengthen the country's air defences. On the Eastern Mediterranean, Cyprus raised Türkiye's plan for a gas pipeline; the EU expects Ankara to respect the sovereignty of all EU Member States.
Regarding the wider Middle East, Kallas said ministers were clear that navigation must be unimpeded in the Strait of Hormuz and that Iran must never have a nuclear weapon. The EU and Bahrain launched negotiations on a new strategic partnership agreement. On Gaza, the Palestine Donor Group raised €900 million. Kallas noted that the EU applies a differentiation policy on settlement products, but implementation has been inconsistent, leading to the request for further options.
On the 21st sanctions package, Kallas regretted that no agreement was reached, though she said member states are quite close. She acknowledged that member states have various reasons for delays but stressed that ending the war requires short-term efforts. The package initially proposed by the Commission has been dismantled for various reasons, with fish removed and visa bans softened. Kallas noted that the call during discussions was to focus on ending the war by putting more pressure on Russia.
On Sudan, the EU expanded sanctions by banning imports of gold and restricting mining chemicals to cut off funding sources for the conflict. Kallas also briefed ministers on her trip to Bosnia and Herzegovina and developments regarding the appointment of a new High Representative, expressing determination to have a European candidate who can help move the country closer to the EU.
The proposed ban on trade with illegal settlements would affect Israeli settlement producers and EU importers, potentially increasing costs and reducing market access. EU consumers may see fewer settlement products on shelves. The sanctions on Russia's prison system and cyber ecosystem increase pressure on Russian authorities and companies, while EU member states face implementation costs. The €120 million for Moldova strengthens its air defences, benefiting Moldovan security but requiring EU budgetary resources. The expanded Sudan sanctions target gold miners and chemical suppliers, potentially reducing conflict financing but impacting livelihoods in the region.