The European Union failed to finalize its 21st sanctions package against Russia on Sunday, leaving open the possibility that the bloc’s price cap on Russian crude exports could lapse on July 15.
EU foreign policy chief Kaja Kallas acknowledged the lack of consensus among member states, stating she could not guarantee the mechanism would be extended in time.
The price cap, a cornerstone of Western energy policy since 2022, restricts the price at which Russian oil can be sold to international buyers in exchange for access to Western shipping and insurance services.
If the cap expires without renewal, Russian exporters could theoretically sell crude at unrestricted market prices, potentially increasing Moscow’s war revenues and tightening global supply.
Markets are closely monitoring the diplomatic stalemate for signs of a last-minute agreement.
Negotiations have been protracted, with member states divided on the scope of new measures and the technicalities of extending existing ones.