EU delays 21st Russia sanctions package — oil price cap at risk of automatic rise

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BRUSSELS — The EU’s foreign ministers failed to sign off on the bloc’s 21st package of sanctions against Russia on Monday, and ambassadors will now convene to discuss freezing a price cap on Russian crude exports by Wednesday — the last day before it resets.

The EU’s top diplomat Kaja Kallas confirmed the setback on Monday afternoon: “Yes, I also regret that we don’t have agreement on the 21st package,” she said.

The package includes keeping the oil price cap at $44.10 per barrel. Without freezing it, higher global oil prices resulting from the Iran war would cause it to ratchet higher automatically, as it does every six months, handing Moscow a windfall .

EU ambassadors could meet on Tuesday afternoon or Wednesday morning to prevent the recalculation from happening. Kallas did not want to speculate over whether freezing the oil price cap would be approved separately from the rest of the package.

The 21st package has been watered down in recent weeks, with a proposed ban on Russian fish exports removed over the weekend. Restrictions on EU visas for ex-soldiers were also toned down.

Kallas said after the meeting of foreign ministers that the bloc had agreed to extend sanctions on Russia in other fields, including cyberattacks and its prison service. “We’re sanctioning Russia at unprecedented speed and scale. Today’s measures, together with the upcoming 21st sanctions package, hold over 250 listings,” she told reporters.