Key facts
- EU foreign ministers failed to reach an agreement on the 21st sanctions package against Russia on July 13.
- Key sticking points include proposed restrictions on Russian fish, ships, and the oil price cap.
- The current oil price cap is set to expire on July 15, potentially allowing Russia to sell oil at higher market prices.
- Greece and Portugal are among the countries objecting to specific measures.
- Bulgarian objections to including the head of Russia's Orthodox Church and Lukoil have been accepted.
EU foreign ministers were unable to finalize the bloc's 21st sanctions package against Russia on July 13 due to disagreements over measures targeting Russian fish, ships, and the oil price cap. The urgency is heightened as the current oil price cap is set to expire on July 15, which could allow Russia to sell oil at market prices and generate increased revenue for its war effort.
Southern EU countries, including Greece and Portugal, have raised objections. Greece fears that maintaining a low price cap could lead shipping companies to register outside the EU, impacting its economy. Portugal is resisting proposed limits on certain Russian fish imports due to concerns about the fish finger industry. Bulgaria's objections to including the head of Russia's Orthodox Church and the head of energy company Lukoil have been accepted and these individuals will not be included in the package.
Despite the lack of agreement, there is optimism that a deal can be reached, potentially by freezing the price cap at its current level until October. Discussions are expected to continue at the ambassadorial level, with a high chance of avoiding the worst-case scenario of the price cap lapsing entirely.