EU extends Russian oil price cap for one week as sanctions talks continue

The European Union has agreed to keep the current price cap on Russian oil in place for another week, buying more time to finalize a broader package of new sanctions against Moscow.

The last-minute compromise was reached just hours before the existing mechanism was due to expire, which would have automatically increased the oil price cap from its current level of $44 per barrel.

EU officials were keen to avoid such an outcome, particularly as oil prices have recently risen amid tensions in the Middle East, potentially boosting Russia’s energy revenues.

The extension is intended to allow negotiators to secure agreement on the bloc’s 21st sanctions package against Russia since the full-scale invasion of Ukraine in 2022. Brussels has proposed maintaining the current oil price cap for several more months as part of the wider sanctions package.

However, the latest round of sanctions has faced resistance from several member states, each raising concerns over different provisions and seeking changes before giving their approval. Despite days of negotiations, EU ambassadors were unable to reach a final agreement.

Bulgaria said it had successfully blocked the inclusion of Russian Orthodox Patriarch Kirill on the sanctions list. Meanwhile, diplomats said Germany opposed a proposed ban on imports of Russian Alaska pollock, a fish widely used in the production of children’s food products.

Negotiators have also discussed softening plans for a blanket visa ban targeting all Russian nationals who participated in the war against Ukraine. According to EU diplomats, discussions are expected to continue, with the bloc aiming to reach a final agreement on the sanctions package by July 23.