Overview
- EU foreign ministers failed to finalise the bloc’s 21st sanctions package on Monday, leaving several measures unresolved and pushing the decision down to ambassadors.
- Ambassadors were tasked to reconvene on Tuesday to try to agree a temporary freeze on the oil price cap before the scheduled July 15 recalculation.
- Under current rules the cap is tied to global prices so a July 15 reset would lift the $44.10 limit and could give Russia a sudden increase in oil revenue that might fund its war effort.
- Objections from Greece, Portugal, Bulgaria and other states over shipping flags, fish imports and specific blacklistings have already forced the package to be watered down, including removal of some listings.
- EU officials say other sanctions were extended during the ministers’ meeting and diplomats are preparing a short-term Plan B that could freeze the cap for a limited period if full consensus cannot be reached.