Brussels (Brussels Morning Newspaper) – EU chief diplomat Kaja Kallas stated on Tuesday that she hoped for consensus soon on a new package of sanctions by the European Union on Moscow, including dropping a price cap on Russia’s oil exports.
The 18th sanctions package over the fighting in Ukraine has been delayed for weeks by a dispute with Slovakia over separate objectives to phase out Russian gas imports and resistance from Malta over the price cap.
Ahead of a gathering of EU foreign ministers in Brussels, the EU foreign policy chief said:
“We are hoping that it’s either today or tomorrow that we adopt the 18th package of sanctions.”
“So I hope it’s today, but it’s still some work to do.”
Officials stated that the EU is nearing an agreement on a plan to reduce its price cap for Russian oil exported to third nations worldwide.
“It’s alive,”
Kallas told journalists.
“Even if the Americans are not aboard, but the other G7 countries are on board, then we will move on with this,”
She stated.
When did the EU propose the 18th sanctions package, and what does it include?
The executive branch of the European Union, the EU Commission, last month presented the 18th package of restrictive measures against Moscow for its attack on Kyiv, aimed at Russia’s energy income, its banking system, and its defence industry.
The new package suggests banning transactions with Russia’s Nord Stream gas pipelines and banks that bypass sanctions. It also offers a floating price cap on Russian oil set at 15% below the average market price of crude over the past three months. Reuters reported.
Moreover, it also involved adding 22 more Russian banks to the list and extending restrictions beyond just removing them from SWIFT, the global financial messaging system, to a complete transaction ban. The proposal also suggests expanding the scope to include banks from third countries and lists the Russian Direct Investment Fund (RDIF), along with its subsidiaries and broader network.
Why is Slovakia blocking the sanctions package approval?
Slovakia has delayed the EU’s 18th package of sanctions against Russia, primarily because of a separate proposal from the European Commission aimed at concluding all imports of Russian gas by 2028.
The PM of Slovakia, Robert Fico, and his cabinet feel this phase-out may create severe disruptions in Slovakia, including discontinuation of energy supply, increased end-user/consumer prices, higher transit fees, and disputes and arbitration cases with the Russian gas supplier Gazprom. Slovakia currently relies on Russian gas from the only contract it has until 2034, but it is looking to have such catastrophes reported in the proposal order, and firm guarantees from EU member countries before it will lift its veto on the sanctions package.
However, Robert Fico has indicated he could drop his opposition after discussion with the European Union over its objectives to cut off Russian gas imports by the end of 2027.
