European Union countries edged closer to a deal on a new sanctions package, as they face strong pressure to punish Russia for escalating its war in Ukraine and illegally annexing four occupied territories there.
The main remaining hitch has been agreeing on the details of a price cap on Russian oil sales to third countries, where the bloc has faced pushback from a few seafaring nations.
“We have preliminary political agreement on the package, with capitals having until 10 a.m. to confirm,” Polish ambassador to the EU, Andrzej Sados, told reporters.
The final details of the package are still in some flux. Greece, Cyprus and Malta, which have large shipping industries and have expressed concerns about curbs on transporting Russian oil, are pushing for exemptions in the package, according to people familiar with the matter.
Member states still need to formally approve the deal, which could happen as early as Tuesday.
The EU has been eager to reach an agreement before leaders meet in Prague on Oct. 7, said the people, who asked not to be identified because the discussions are private.
Hungary has also been an obstacle in the discussions, according to the people. Sanctions decisions in the EU require unanimity, giving each country an effective veto.
Chemicals, Aviation
The broader sanctions package would target a range of individuals and entities, including senior Russian ministry officials and people involved in staging the recent, widely condemned referendums. It would also restrict access to aviation items, electronic components and specific chemical substances to deprive Russia’s military from important technologies.
Read more: EU Aims to Exempt Maritime Pilot Services From Russia Oil Ban
Some nations were upset that the latest draft of the sanctions appears to have weakened several of the proposed measures, including the removal of a Russian diamond mining company from the penalty list, one of the people said.
The sanctions would add a ban on shipping Russian oil, but carve out an exemption for oil priced at or under a level set by a coalition of the Group of Seven and other countries, according to a draft of the proposal seen by Bloomberg.
To allow for an oil price cap, the bloc will have to change its current legislation. In June, EU nations agreed to a full ban on insurance and financial services for seaborne oil, while shipping was spared from the restrictions. Most of those prohibitions are due to kick in Dec. 5 alongside a ban on EU purchases of Russian crude.
The G-7, which endorsed a cap earlier this month, has said it wants an agreement in place before that date.
