The EU capitals have reached an agreement on a significantly weakened package of sanctions against Russia, ending lengthy negotiations in which several countries sought exceptions to protect their national interests.
EU ambassadors approved Thursday morning the 21st package of sanctions of the community bloc, ending the deadlock that had been ongoing since the European Commission presented its proposal on June 9, according to Euractiv.
Discussions were prolonged until the last hours, with Greece becoming the latest state to oppose, in an attempt to secure exceptions for its shipbuilding industry.
Athens requested a derogation to allow companies, including the Greek liquefied natural gas (LNG) carrier Dynagas, to continue transporting Russian LNG to non-EU countries.
According to several diplomats, based on the compromise negotiated by Ireland, governments have agreed to a one-year exception, allowing companies to transport Russian LNG to third countries, with annual reviews of this arrangement and a 12-month freeze on any changes to the G7 oil price cap.
The compromise still requires the official approval of all 27 member states.
Oil price cap
EU governments rushed to resolve the deadlock before the current suspension of the G7 oil price cap expires on Thursday.
Last week, EU capitals agreed to extend the deadline to gain time to find a solution, and then pressured Greece to accept a longer freeze in exchange for permission to continue LNG transport.
The European Commission had initially proposed a six-month freeze, preventing EU firms from providing services to Russian vessels transporting crude oil sold above a certain price.
In the absence of an agreement, the cap risked automatically increasing to $58 per barrel, from the current level of $44, potentially bringing additional revenues to the Kremlin, allowing Russia to earn more from its oil exports.
The package, initially described by diplomats as one of the most ambitious of the community bloc, emerged from negotiations in a considerably diminished form.
An initiative supported by the Baltic states to ban entry of Russian soldiers into the community bloc was significantly reduced after opposition from France, Italy, and Greece. Its scope was limited to short-stay visas, and the criteria were narrowed from general participation in war to direct involvement in combat or military operations.
Negotiations were also delayed for weeks due to Austria's insistence that Raiffeisen Bank International should have access to frozen Russian assets to offset losses resulting from legal actions in Russia. The issue was eventually mentioned in an explanatory section of the legal text, with member states agreeing to reassess it later.
Countries largely removed plans to gradually reduce imports of Russian fish, amid opposition from Germany, Poland, and Portugal.
Meanwhile, Bulgaria blocked efforts to sanction Patriarch Kirill, the leader of the Russian Orthodox Church in Moscow, ensuring his removal from the blacklist.
Despite the concessions, the package still includes approximately 250 additional individuals and entities on the sanctions list.