The twenty-seven member states of the European Union reached an agreement on Thursday morning in Brussels to impose new sanctions on Russia, after several weeks of negotiations.
The compromise was announced by diplomats on the morning of July 23. This 21st sanctions package primarily targets Russian oil revenues: the price cap mechanism on oil exported by Moscow, set at 44 dollars per barrel, is extended by one year. These revenues finance a large part of Russia’s war effort against Ukraine.
The final text had to be softened compared to the initial proposal from the European Commission. Greece obtained an exemption on liquefied natural gas (LNG): its companies will be allowed to continue transporting Russian LNG to customers outside Europe, provided that the relevant contracts were concluded before February 24, 2022, the date of the start of the large-scale invasion of Ukraine. This exemption will be reviewed annually by the member states.
Beyond oil, the package introduces new transaction bans targeting the Russian financial sector and unprecedented measures against cryptocurrencies. It also expands the list of oil tankers in the “ghost fleet,” vessels flying false flags that Russia uses to circumvent restrictions on its energy and goods exports.
Additional trade restrictions have also been integrated into the text, aiming to weaken the Russian military industry.
