EU seals 21st sanctions package on Russia with oil cap freeze and LNG exemptions
The European Union has agreed to a new round of sanctions targeting Russia’s energy and financial sectors, securing a 12-month freeze on the oil price cap while granting exemptions for Russian liquefied natural gas transfers.
EU ambassadors reached a political agreement on the 21st sanctions package against Russia on Thursday, concluding weeks of negotiations that saw several proposed measures blocked by individual member states. The agreement, confirmed by EU diplomats, maintains the current price cap on Russian crude oil exports at $44 per barrel for a further 12 months, preventing the mechanism from expiring and allowing the price to rise.
The package targets the sectors deemed to have the highest impact on Moscow’s war effort, including energy, financial services, cryptocurrency, and trade. European Council head Antonio Costa stated that the measures are designed to ensure the Russian war machine does not benefit from market shocks. The agreement also includes the blacklisting of additional Russian officials and imposes restrictions on financial and crypto-related activities.
A significant component of the deal is a one-year exemption allowing the transfer of Russian liquefied natural gas (LNG) to third countries, with automatic renewal. European Commission President Ursula von der Leyen supported the exemption, arguing it stabilises global markets. The final hurdle for the package was cleared after Greece was granted a specific exemption permitting one of its shipping firms to continue transporting Russian LNG from the Arctic, a concession that helped secure broader member state support.
However, the consensus was not universal, leading to the removal of several contentious elements. A proposed sweeping visa ban on Russians who fought in Ukraine was deferred, with diplomats noting only a commitment to work towards such a ban in the future. Bulgaria successfully blocked the inclusion of Russian Orthodox Patriarch Kirill on the asset freeze and visa ban blacklist, while Portugal and France objected to and prevented bans on imports of cod and Alaskan pollock from Russia.
Technical work on the sanctions package will now be concluded, with a written procedure for adoption scheduled to launch on Thursday afternoon. The agreement represents the latest iteration of EU pressure on Moscow since the start of the war in Ukraine, reflecting the ongoing complexity of maintaining unified economic sanctions across the bloc’s 27 member states.
