New EU sanctions will ‘hit Putin where it hurts most’, says foreign policy chief Kallas – Europe live

The European Union has enacted its 21st and "largest round in four years" of sanctions against Russia, targeting Moscow’s financial system, military-industrial complex, and energy sector in a bid to cripple its war economy. Concurrently, in a landmark decision, the EU has levied a substantial €890 million fine against Google for violating online competition laws, specifically under the Digital Markets Act (DMA). These developments unfold against a backdrop of escalating political pressure in Ukraine for President Volodymyr Zelenskyy to reinstate his recently sacked defence minister, Mykhailo Fedorov, and ongoing diplomatic efforts between the US and Russia regarding the conflict.

EU Unleashes Broadest Sanctions Package to Date Against Russia

Following weeks of intensive negotiations and a contentious delay, EU ambassadors finally reached a political agreement on the 21st package of sanctions against Russia on Thursday, 23 July 2026. This comprehensive set of measures, described by EU foreign policy chief Kaja Kallas as designed to "hit Putin where it hurts most," marks the most extensive round of listings in four years, encompassing 218 entities and individuals. Kallas emphasized that these "sweeping measures" are aimed at "cutting off the financial lifelines he relies on to sustain his war."

The newly adopted sanctions are meticulously crafted to target critical pillars of Russia’s war effort. Over one hundred Russian banks and crypto operators have been added to the transaction ban list, intensifying the financial isolation of Moscow. The energy sector, a primary revenue stream for the Kremlin, is also severely impacted, with more than 40 "shadow fleet vessels" and several oil refineries in both Russia and Belarus being targeted. This marks a significant escalation, as it is the first time the EU has explicitly sanctioned vessels involved in Russia’s clandestine oil transport operations, which are crucial for evading existing price caps and export restrictions.

Furthermore, the package addresses Russia’s continued aggression against Ukrainian civilians and infrastructure by listing over 50 military-industrial entities. This includes key actors implicated in the production of Russia’s long-range drones, a weapon system that has inflicted widespread damage and casualties across Ukraine. These listings build upon previous measures, such as last week’s sanctions on individuals responsible for the abuse and killing of Ukrainian prisoners of war and civilian detainees, as well as tech companies facilitating the Kremlin’s repression of internet users. European Commission President Ursula von der Leyen reiterated the EU’s commitment, stating that the sanctions "continue to weaken the economic foundations of Russia’s war effort." She highlighted additional provisions, including freezing the oil price cap adjustment for a year to prevent Russia from profiting from market volatility and taking "an important step towards formally banning Russian combatants from entering the EU," although the full implementation of this latter measure appears to have been deferred for further legislative work.

Greek Concession Highlights Challenges to EU Unity

The path to adopting this 21st sanctions package was not without its internal struggles, revealing the complex dynamics and national interests within the 27-member bloc. Greece, in particular, proved a significant sticking point, having previously blocked the entire round of sanctions. Athens ultimately secured a crucial one-year exemption from an earlier EU sanctions measure that would have phased out the transport of Russian liquefied natural gas (LNG) by 1 January 2027. This carve-out permits Greek shipping companies to continue transporting LNG to non-EU countries, provided the contracts were signed before Russia’s full-scale invasion of Ukraine.

The concession specifically benefits Dynagas, a prominent Greek shipping company specializing in LNG transport from Russia’s Yamal fields. This move by Greece, despite having agreed to the broader measure in October 2025, underscores the economic pressures and strategic considerations that can lead individual member states to leverage their veto power. EU diplomat sources described Wednesday’s discussions as "heated," with ambassadors racing against time to finalize the agreement before the summer recess, thereby avoiding a potentially embarrassing deadlock.

While the EU deputy chief spokesperson, Olof Gill, refrained from commenting directly on the Greek exemption, he affirmed the established process: "The Commission proposes, the member states discuss, the member states adopt." This statement, however, did not fully address concerns about whether Greece’s successful veto threat might establish a problematic precedent for future sanctions packages, potentially complicating the EU’s ability to present a united front against Russia. The incident highlights the delicate balance between collective punitive action and accommodating the diverse economic interests of member states, a recurring challenge in EU foreign policy.

Ukraine’s Political Shake-Up Amidst Public Discontent

Away from the diplomatic corridors of Brussels, Ukraine is grappling with significant internal political turmoil, as President Volodymyr Zelenskyy faces mounting pressure to reinstate Mykhailo Fedorov, his recently dismissed defence minister. Campaigners across the nation have vowed to continue indefinite protests until Fedorov is returned to his post, signaling a growing public discontent with recent leadership changes.

The crisis deepened on Tuesday when Zelenskyy, bowing to public demands, fired Ukraine’s commander-in-chief, Oleksandr Syrskyi, and appointed Mykhailo Drapatyi as the new head of the country’s armed forces. This radical reshuffle of the top military command was an attempt to address concerns about military strategy and leadership during the ongoing conflict. However, Zelenskyy’s efforts to placate public anger by offering Fedorov a new government role as deputy prime minister for technological development have reportedly failed, with Fedorov turning down the position.

Fedorov, a figure lauded for his ambitious plans to modernize and reform Ukraine’s army, insists on being reinstated as defence minister, arguing it is the only viable path to implement his vision effectively. The position, however, is no longer vacant, as Zelenskyy has since appointed special forces commander Yevhenii Khmara as acting minister. The public outcry is being spearheaded by prominent veterans like Dmytro Koziatynsky, who took to social media to rally support, stating, "We should not forget about the second demand of the protest – to return Mykhailo Fedorov to the position of minister of defence." He urged citizens to "do everything possible to ensure that the government hears and satisfies all the demands of society," indicating that Ukraine’s political crisis is poised to extend into a second week, with a major rally planned for Friday evening outside Zelenskyy’s presidential office in Kyiv.

US-Russia Diplomacy: A "Stupid War" and Search for "New Ideas"

Adding another layer of complexity to the global geopolitical landscape, US Secretary of State Marco Rubio held a "good, frank conversation" with Russian Foreign Minister Sergei Lavrov in Manila. This marked their first direct encounter since September 2025 and occurred on the sidelines of an Asian summit. The meeting underscored the ongoing efforts, however challenging, to address the protracted conflict in Ukraine.

According to a Russian foreign ministry statement reported by AFP, Lavrov used the meeting to "stress that it was unacceptable to continue supplying weapons to the Kyiv regime," reiterating Moscow’s consistent stance. He also condemned what he termed "a destabilizing policy by European countries," accusing them of "still seeking to inflict a ‘strategic defeat’ on Russia." These statements highlight the deep divisions and fundamentally opposing views held by both nations regarding the conflict.

Rubio, however, presented a nuanced US perspective, stating that he did not recognize the Russian readout’s suggestions regarding US arms deliveries, affirming that there has been no change in US policy. He characterized the conflict as "a very bloody war," noting that Russians are now "suffering strikes deep in their territory," a development not observed at the end of the previous year. Acknowledging Ukraine’s "tremendous price" in terms of civilian deaths and strikes in Kyiv, Rubio conveyed President Trump’s view that it is "a stupid war," "a senseless war," and that "both sides should have an incentive to bring it to an end."

The core challenge, Rubio emphasized, remains finding "an end that both sides can accept." He acknowledged past unsuccessful efforts by the US to mediate a resolution, describing them as "unfruitful at the time." However, he expressed readiness for renewed engagement if "conditions and factors have changed to make that possible," stressing that a resolution would require "new ideas and some new concepts." The US, he asserted, is "prepared to offer some of those in the right setting and form if the opportunity presents itself and the conditions are right," reaffirming a commitment to play a "positive role" in ending the war, with the ultimate goal of stopping the deaths and enabling Ukraine to rebuild in peace. This diplomatic overture also comes as Washington’s strategic focus has notably shifted towards addressing the burgeoning conflict in the Middle East, potentially influencing its approach to the Ukrainian crisis.

EU’s Clampdown on Big Tech: Google Fined €890 Million

In a separate but equally significant development in Brussels, the European Union delivered a powerful blow to Google, imposing an €890 million (£760 million) fine for egregious breaches of online competition laws. This substantial penalty, split between €460 million for search-related violations and €430 million for app store infringements, represents a decisive enforcement action under the EU’s groundbreaking Digital Markets Act (DMA).

The European Commission, the EU’s executive arm and chief competition regulator, found that Google, as a designated "gatekeeper" under the DMA, had systematically abused its dominant market position. Specifically, the investigation revealed that Google prioritized its own specialized services, such as shopping and hotel deals, within its search results, unfairly disadvantaging rival services. This practice effectively steered users towards Google’s offerings, stifling competition and limiting consumer choice.

Furthermore, Google was found to have infringed the DMA by implementing restrictive clauses that prevented app developers from directing consumers towards more affordable offers available on external websites or alternative app stores. This anti-competitive behavior undermined the ability of smaller developers and businesses to compete fairly, hindering innovation and potentially leading to higher costs for consumers.

The EU’s Digital Markets Act, enacted to rein in the market power of large online platforms, mandates that "gatekeepers" — companies with significant market influence — adhere to a strict set of rules designed to ensure fair competition and greater choice for end-users. Thomas Regnier, an EU tech spokesperson, underscored the philosophy behind the ruling, stating, "In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field, and consumers the right to choose for cheaper alternatives offers."

Google has been given a 60-day window to comply with the DMA’s requirements. While the tech giant retains the right to appeal the decision and may seek interim measures, including a suspension of the ruling, the fine itself signals the EU’s unwavering commitment to robust digital regulation. Politically, this decision is anticipated to generate fresh tensions with the United States, particularly given US President Donald Trump’s known "impulsive reactions" to such actions against American tech behemoths. The EU’s continued assertive stance on digital regulation positions it as a global leader in shaping the future of online competition, with potential ripple effects for how tech giants operate worldwide.