The European Council regrets that the requested steps it set out in its 27 June conclusions have not been adequately taken. As a result, the European Council agrees to expand the restrictive measures, with a view to targeting entities, including from the Russian Federation, that are materially or financially supporting actions undermining or threatening Ukraine's sovereignty, territorial integrity and independence. It tasks the Council to adopt the necessary legal instruments and to decide by the end of July on a first list of entities and persons, including from the Russian Federation, to be listed under the enhanced criteria. It also asks to consider the possibility of targeting individuals or entities who actively provide material or financial support to the Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Eastern-Ukraine. The European Council requests the EIB to suspend the signature of new financing operations in the Russian Federation. European Union Member States will coordinate their positions within the EBRD Board of Directors with a view to also suspending financing of new operations. Finally, the European Council invites the Commission to re-assess EU-Russia cooperation programmes with a view to taking a decision, on a case by case basis, on the suspension of the implementation of EU bilateral and regional cooperation programmes. However, projects dealing exclusively with cross-border cooperation and civil society will be maintained.

The European Council recalls that the Commission, the EEAS and the Member States have been undertaking preparatory work on targeted measures, as it requested in March, so that further steps can be taken without delay. The European Council remains committed to reconvene at any time should events so require.

In line with the policy of non-recognition of the illegal annexation of Crimea and Sevastopol, the European Council requests the Commission and the EEAS to present proposals for additional measures in particular on restricting investments in Crimea and Sevastopol. The European Council also expects the International Financial Institutions to refrain from financing any projects that explicitly or implicitly recognise the illegal annexation of Crimea and Sevastopol.