EU fails to pass 21st Russia sanctions package

Investing.com -- The European Union did not reach agreement on a 21st sanctions package against Russia on Monday, leaving uncertain the future of measures designed to limit Moscow's oil revenue.

The main disagreements centered on restrictions for transporting Russian liquefied natural gas and measures related to Austria's Raiffeisen Bank International AG, according to a Bloomberg report Monday citing people familiar with the private discussions.

EU members also could not agree on freezing the bloc's floating price cap on Russian oil, a key part of the proposed package. Without action by Wednesday's deadline, the cap will likely rise significantly above the current $44.10 level due to high global fuel prices.

EU ambassadors can revisit the issue at a meeting on Wednesday.

"We really need to take this short-term pain for long-term gain," EU foreign policy chief Kaja Kallas said after Monday's meeting.

Foreign ministers had aimed to finalize the sanctions on Monday but could not resolve their differences during weekend negotiations.

Ministers did agree separately to add 250 new listings targeting banks, crypto operators and tankers allegedly helping Russia bypass existing sanctions. These listings are part of updates made on a rolling basis outside of the main sanctions packages.

Kallas said the 21st package was "quite close" but could not guarantee a decision on the oil price cap by Wednesday.

The EU adopted the floating oil price cap last year to keep the ceiling 15% below the average market rate for Russian Urals crude. The cap resets every six months. European firms cannot provide services like insurance and transportation for oil sold above this threshold.

The system functioned until US and Israeli strikes on Iran tightened the oil market and pushed prices higher.

Some countries with large maritime sectors raised concerns about proposed changes to rules for shipping Russian LNG to non-EU countries.

The package also includes a disputed proposal to restrict Russian combatants from entering the EU. Kallas said work would continue on that measure.

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