EU Moves to Lock Oil Price Cap and Target Major Energy Firms in 21st Russia Sanctions Package

Overview

• EU diplomats are racing to finalise a 21st sanctions package that will be presented to the European Commission for approval, with the aim of strengthening pressure on Russia rather than pursuing new talks.
• A central measure is to lock the current oil price cap so it does not rise automatically under the mechanism now scheduled to adjust this summer.
• The package is expected to expand restrictions on the shadow fleet by listing more tankers and related service providers and by targeting operators who help Russia evade sanctions.
• Major Russian energy firms including Lukoil and Rosneft are likely to face new sectoral measures, and officials are discussing adding high-profile individuals such as Patriarch Kirill despite political resistance from some member states.
• Smaller EU states and officials want even tougher steps, including wider banking, trade and export curbs and measures against Russia’s nuclear agency, but a full ban on Russian oil or on maritime transport is seen as unlikely for this package.