EU scrambles to approve new Russia sanctions as oil price cap deadline looms

European Union member states are in a race against time to finalize a new package of sanctions against Russia, with a critical deadline looming that could potentially weaken a key measure designed to curb Moscow's oil revenues. Ambassadors from the 27 member states were scheduled for final negotiations in Brussels, aiming to overcome numerous objections that have stalled progress on the latest sanctions package.

If an agreement is not reached by Wednesday, the EU may be compelled to implement an increase in the price cap for Russian oil exports. Currently set at $44 USD, the cap is slated to rise to a level closer to international oil prices following a recent surge attributed to the conflict in the Middle East. Brussels intended to modify these regulations within the new sanctions package to maintain the current price cap for several more months, thereby preventing the Kremlin from profiting from the price increase.

However, the proposed 21st sanctions package, introduced last month since Russia's invasion of Ukraine in 2022, has encountered significant hurdles. Various countries have raised objections to specific components, seeking to soften their impact. Bulgaria, for instance, has resisted the inclusion of Patriarch Kirill of Moscow on the blacklist. German diplomats indicated opposition to a ban on importing Alaska pollock, a fish commonly used in children's food, from Russia. Efforts are also underway to dilute a proposed comprehensive visa ban for all Russian citizens who participated in the war in Ukraine.

Given the remaining unresolved issues, uncertainty surrounds the possibility of reaching an agreement before the oil price deadline. Kaja Kallas, the EU's High Representative for Foreign Affairs and Security Policy, stated after a meeting of the bloc's foreign ministers that the countries are "quite close" to an agreement. "Our goal is to reach an agreement. If we don't have an agreement, we will start working on plan B," she added. Failure to reach a consensus would represent a setback for the EU, particularly as Kyiv appears to be shifting the momentum in the war. European Commission President Ursula von der Leyen is scheduled to visit Kyiv on Wednesday for talks with Ukrainian President Volodymyr Zelenskyy.

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Our goal is to reach an agreement. If we don't have an agreement, we will start working on plan B.