On 23 July 2026, the Council of the European Union adopted a decision amending the EU sanctions regime against Russia, adding 48 individuals and 168 entities to the asset freeze list for actions undermining Ukraine's territorial integrity. The decision also introduces new exemptions and derogations, including for rail transport by JSC Russian Railways, the Paks II nuclear project in Hungary, and pre-2015 contractual obligations, while blocking enforcement of Russian court rulings related to sanctions-affected contracts.
The amendments to Decision 2014/145/CFSP mark the latest expansion of EU restrictive measures since the invasion of Ukraine. The new listings target persons and entities involved in supporting Russia's military efforts or undermining Ukraine's sovereignty. The full list is contained in the Annex to the decision.
Among the key exemptions, the asset freeze does not apply to funds or economic resources necessary for rail transport of goods or persons between Russia and the EU, in transit through the EU, between Kaliningrad Oblast and Russia, or within Russia, including related services. This exemption benefits JSC Russian Railways and aims to maintain essential connectivity.
Similarly, an exemption is granted for the Paks II civil nuclear project in Hungary. Funds or economic resources strictly necessary for the project, involving entities listed under entries 975, 976, and 977, are exempt from the asset freeze. Hungary must notify other Member States and the Commission within two weeks of receiving information on such activities.
The decision also introduces a derogation allowing competent authorities to authorise the release of frozen funds to pay indemnities due by listed entities to non-listed entities in the EU, EEA, Switzerland, or partner countries listed in Annex VII to Decision 2014/512/CFSP. Another derogation permits share transfers or fund releases for individuals listed under entries 674 and 675, based on put option rights agreed and exercised before 28 February 2022 but not yet effected.
In a significant legal measure, Member States shall not recognise or enforce any injunction, order, judgment, or administrative decision by a Russian court or authority in connection with contracts affected by the sanctions. This aims to prevent Russian courts from undermining EU sanctions.
The Commission is tasked with monitoring cases where sanctions generate undue economic benefits for listed persons and presenting assessments to the Council. The High Representative may propose measures to avoid such benefits.
The expanded listings increase compliance burdens for EU businesses and financial institutions dealing with Russian entities. The exemptions for rail transport and Paks II benefit specific sectors and Hungary's energy project, while the derogation for insurance payments and pre-2015 contracts provides relief for certain contractual obligations. The non-recognition of Russian court decisions protects EU companies from legal retaliation but may complicate dispute resolution.
The decision enters into force upon publication in the Official Journal. The Commission will monitor undue benefits and report to the Council. Further amendments may follow based on the High Representative's proposals.