EU freezes Russian oil price cap and delays 21st sanctions package

European Union member states could not reach a unanimous decision on the 21st sanctions package against Russia. The deadlock centers on Greece’s objection to a proposed ban on the transit of Russian liquefied natural gas (LNG), which the Greek government says would harm its shipowner Dynagas, as well as objections from other members over measures targeting Russian fisheries, banks and visa policies. As a temporary compromise, the EU agreed to keep the price ceiling on exported Russian crude oil at $44.10 per barrel until 23 July, preventing an automatic rise to roughly $58 that would have followed higher world oil prices after the Iran‑related conflict. The extension aims to limit Russia’s oil revenue, which funds its war in Ukraine. Negotiations on the broader sanctions package will continue, with a next round of talks scheduled for late July.

The stalemate also sees Austria seeking exemptions for its Raiffeisen Bank, Bulgaria opposing sanctions on the Russian Orthodox Patriarch, and other members pushing for adjustments to fisheries and LNG measures. The outcome will shape EU pressure on Moscow and impact global oil markets.