The EU agrees a new package of sanctions against Russia and extends the cap on the price of its oil

BrusselsThe European Union continues applying sanctions against Russia to try and force it to the negotiating table. Member states agreed this Thursday on the 21st package of restrictions on Vladímir Putin's regime and, among other measures, will extend for longer the application of a price cap on Russian-origin oil. For at least the next twelve months, the maximum European companies will be able to pay for a barrel of crude oil arriving from Russia is $44.10.

The European bloc will also include 218 Russian personalities and entities on the European Union's blacklist, and therefore, any funds they hold in EU territory will be blocked and they will be prohibited from entering the territory. "We are responding to Russia's relentless attacks against civilians, infrastructure, and cultural heritage by adding more than 50 entities from the military-industrial complex to the list and including key players involved in the production of Russia's long-range drones," wrote the head of European diplomacy, Kaja Kallas, in a message disseminated on social media.

The governments of the member states have also given the green light to expand sanctions on the Russian financial and digital sector. As announced on social media by the President of the European Commission, Ursula von der Leyen, the package adds 32 banks based in Russia that are prohibited from conducting transactions in the European Union, as well as cryptocurrency platforms or those related to oil trading. "This is another decisive step to intensify pressure on Russia," added the President of the European Council, António Costa.

Tough negotiations

The sanctions agreement has come later than expected because Greece —which has large shipping companies— wanted to prevent this 21st sanctions package against Russia from including a ban on European companies transporting liquefied natural gas (LNG). Finally, after long negotiations between member states, Athens has managed to avoid a total veto, and all contracts signed before the start of the war in Ukraine in February 2022 will be exempt.