Under the original proposal, the cap would have been frozen for only six months. Ambassadors extended that to a year; without a deal, the price would instead have risen in line with global markets, boosting Kremlin revenue used to fund the war in Ukraine.
Talks had run long. A deadline to update the cap passed a week earlier without agreement, so the price was held in place for several extra days while negotiations continued.
Greece was the last holdout, pushing to keep exporting Russian liquefied natural gas to third countries despite an EU-wide LNG import ban set to take full effect in 2027. Athens argued that ban was never meant to cover onward transfers, and secured a carve-out.
"A compromise was reached on the contentious issue of LNG transfers to third countries", an EU diplomat said, describing the exemption as covering transfers and related purchases under contracts predating Russia's February 2022 invasion. "Any expansion of these transfers by EU operators is restricted", the diplomat added, noting member states will review the exemption yearly.
Beyond the oil cap, the package adds sanctions on individuals and entities tied to the war, new restrictions on Russian finance and crypto, and measures against Russia's defense industry and the "shadow fleet" that ships oil above the Western cap.
A separate push to bar entry into the EU for veterans who served in Russia's military since the invasion fell short after objections from France and Italy, which worried about strain on consular services handling Russian visa requests. The package instead commits only to restricting visas for former Russian soldiers.
European Council President Antonio Costa called the deal a further step up in pressure on Moscow, saying it "covers the most important sectors: energy, financial services, crypto and trade", and that EU support for Ukraine "remains unwavering".
The agreement now goes to member states' capitals for formal confirmation through a written procedure.
(jh)
Source: PAP
Click on the audio player above for Danuta Isler's interview with Iwona Wiśniewska, an expert on the Russian economy at the Center for Eastern Studies in Warsaw.
The interview focuses on Russia's current economic situation and the impact of the EU's sanctions to date.