EU ambassadors failed to reach a final compromise on the 21st sanctions package against Russia on Wednesday, but agreed to maintain the current oil price cap of $44 per barrel until July 23, according to Reuters citing an anonymous EU diplomat.
The temporary solution gives member states an additional week to negotiate a permanent deal. Without an extension, the cap would have automatically risen to $58 per barrel, increasing revenues for the Kremlin. The decision was uncertain until the last moment.
According to two diplomatic sources cited by PAP, Austria has been the main obstacle to agreement in Brussels. Vienna insisted on loosening sanctions to protect the interests of its bank Raiffeisen, which continues to operate in Russia. Austria’s proposal found no support among other capitals, and pressure from EU leaders during Monday’s meeting of the coalition of the willing in Paris did not change its position.
Austria blocks agreement over Raiffeisen bank
Austria demanded exemptions for Raiffeisen, a major European bank still active in Russia. Other member states rejected this condition, viewing it as a weakening of sanctions. The deadlock forced the temporary extension of the oil price cap, delaying the entire package.
Another source of contention was the proposed restrictions on the transport of Russian liquefied natural gas (LNG). Shipping companies from Greece, Cyprus, and Malta opposed these measures, citing economic interests. These disagreements prevented the full package from being adopted.
LNG transport and visa bans also face resistance
The European Commission also proposed a ban on entry into the EU for all individuals fighting on Russia’s side in the Ukraine war. However, France and Italy, which host the largest numbers of Russian tourists, raised concerns about the burden on their consular services processing visa applications. Bulgaria rejected sanctions against Russian Patriarch Kirill. Germany and Portugal opposed a proposed ban on fish imports from Russia.
European Union foreign policy chief Kaja Kallas defended the negotiation process during a press conference on Monday. – It is always better to come out with the strongest possible proposal. Then when some things are removed, we still end up with a strong package – said Kaja Kallas. She also addressed the issue of former combatants: – Regarding former combatants, work will continue because this poses a threat to our security and we should not allow these people to come to Europe – stressed Kaja Kallas.
Kallas defends negotiation process despite cuts
Kallas acknowledged that the original proposal had been trimmed down during negotiations, but insisted the final outcome remains substantive. The temporary oil price cap provides breathing room for diplomats to resolve remaining disputes. The 21st package aims to hit Russia’s energy sector, cryptocurrency market, and soldiers fighting in Ukraine, but internal divisions among member states continue to delay a unified stance.
Źródło: Polsat News, Fot. Polsat News
