Key facts
- EU ambassadors agreed on the 21st sanctions package against Russia.
- The package includes a price cap on Russian oil set at $44 a barrel for the next year.
- Around 250 entities will be added to the sanctions list.
- Proposals for trade restrictions on Russian fish and a ban on Russian soldiers were removed or postponed.
- Compromises were made regarding Russian LNG transfers and Raiffeisen Bank's operations.
The European Union has reached an agreement on its 21st package of sanctions against Russia, overcoming a significant hurdle posed by Greece's objections. The deal, struck on the morning of July 23, was described as challenging by an EU diplomat but maintained bloc unity.
The agreed measures include a price cap on Russian oil, set at $44 per barrel for the next year, which aims to deprive Russia of revenue amidst volatile energy markets. This cap is designed to remain below market prices, with provisions for upward adjustment if market prices rise, though it will not exceed $58 and will not increase if prices remain unstable.
Nearly all of the approximately 250 entities proposed by the EU's External Action Service are set to be added to the sanctions list, marking the largest single-package addition since 2022. Measures targeting Russia's financial sector and cryptocurrencies have also been retained.
However, several proposals were either removed or significantly altered. Trade restrictions on Russian fish were entirely excluded, and a proposed ban on Russian soldiers was postponed, though the EU committed to future measures.
Individual member states also secured specific outcomes. Bulgaria successfully blocked the inclusion of Archbishop Kirill, head of Russia's Orthodox Church, from the sanctions list. Austria achieved a compromise for Raiffeisen Bank, which has continued operations in Russia. Greece negotiated a compromise concerning measures against Russian LNG transfers, allowing pre-invasion contracts to continue with annual reviews while banning expansions and new contracts.
EU ministers are expected to formally adopt the package through a written procedure, with further details anticipated upon its finalization.