EU Sanctions Against Russia Stalled Amid Energy Price Disputes

The European Union's (EU) ambassadors have failed to reach an agreement on the 21st round of sanctions against Russia after three days of talks. The proposed package aimed to target Russia's energy, financial, crypto, trade, and fisheries sectors, as well as bar entry to Russians who served in the military since February 2022.

The draft put forward by the European Commission included replacing the existing price cap on Russian crude with a ban on services needed to ship oil. However, Greece voiced concerns over phasing out Russian liquefied natural gas (LNG) shipments, while Bulgaria criticized the package for being counterproductive and more damaging to EU members' economies than Russia's.

The oil- and gas-related provisions were the most contentious issues, with Malta also resisting the proposal due to concerns about its shipping companies. Lithuanian Foreign Minister Kestutis Budrys stated that EU members were undecided on the proposed ban and tightening restrictions on Russian LNG.

For now, the EU envoys agreed to freeze the existing price cap on Russian oil at $44.10 per barrel until July 23, when they are scheduled to convene again in a bid to reach a deal on the sanctions package. If members fail to agree, the price cap could rise to $58 per barrel.