Brussels: EU foreign affairs chief Kaja Kallas expressed optimism on Tuesday about reaching a consensus soon on a new set of sanctions targeting Russia. This includes a proposal to lower the price cap on Russia’s oil exports. The sanctions, intended as a response to the ongoing conflict in Ukraine, have faced delays due to disagreements with Slovakia over phasing out Russian gas imports and Malta’s resistance to the price cap.
According to TRTworld.com, the EU is striving to finalize the 18th package of sanctions imminently, as Kallas indicated ahead of a meeting of EU foreign ministers in Brussels. Despite efforts, EU allies have been unable to persuade US President Donald Trump to support the initiative. The current oil price cap, established by the G7 at $60 in 2022, aims to restrict Russia’s revenue from oil exports by prohibiting shipping firms and insurance companies from facilitating transactions above this threshold.
The proposed EU scheme would introduce a new flexible rate below market value, approximately $47.6, based on internal EU discussions. This scheme would likely have the support of G7 allies such as Britain and Canada. However, diplomats acknowledge that the absence of US endorsement may reduce the plan’s effectiveness. Kallas emphasized that the EU intends to proceed with the plan, even without US involvement, as long as other G7 nations remain supportive.
In addition to adjusting the oil price cap, the EU plans to expand sanctions by targeting numerous vessels in Russia’s “shadow fleet” of older tankers, which are used to bypass existing oil export restrictions. Meanwhile, President Trump has adopted a firmer stance on Russia, threatening to impose significant “secondary tariffs” if Moscow does not cease hostilities within 50 days.