EU locks in oil price cap in new Russia sanctions

BRUSSELS

European Union countries on July 23 agreed a new watered-down round of sanctions on Russia over the Ukraine war after weeks of haggling, freezing the level of an oil price cap.

The package — the 21st by the EU since Moscow's 2022 invasion — was held up by a raft of objections by member states to various proposed elements.

"Our 21st sanctions package targets the sectors with the highest impact: energy, financial services, crypto, and trade," European Council head Antonio Costa posted on social media.

"Our support for Ukraine and for a just and sustainable peace remains unwavering."

Diplomats said the final hurdle was overcome after Greece was granted an exemption allowing shipping firms to carry on transporting Russian liquefied natural gas from the Arctic.

Ambassadors from the EU's 27 member states had been racing to seal an agreement to lock in a price cap on Russian global crude exports at $44 before a deadline that could have seen it leap up.

Under the deal the current level will remain in place for the next 12 months, as the EU tries to prevent Moscow cashing in on a surge in oil prices due to the Middle East war.

The new package also targets Moscow's financial sector and crypto firms, and blacklists scores more Russian officials over the war.

But a sweeping visa ban that had been proposed to stop Russians who fought in Ukraine from coming to the bloc has been kicked down the road.

Diplomats said there was only a commitment to work towards such a ban in the future.

Various other elements have also been stripped out.

Bulgaria said it managed to block putting Russian Orthodox Patriarch Kirill on an asset freeze and visa ban blacklist.

Portugal and France objected to a ban on imports of cod and Alaskan pollock from Russia, diplomats said.

The new barrage of sanctions comes as Kiev appears to be turning the tide on Moscow after more than four years of gruelling combat.

"At a time when Ukraine has built military momentum, our sanctions continue to weaken the economic foundations of Russia's war effort," European Commission chief Ursula von der Leyen wrote online.

While Moscow has managed to weather years of economic punishment from the West and keep pressing on with its offensive, EU officials insist their sanctions are taking a growing toll.

But diplomats warn that after over 20 rounds of sanctions it is becoming increasingly difficult to find new areas to target that all 27 EU countries can agree on.