Without another extension next week, the cap will automatically rise because oil prices have increased due to the war in Iran — benefiting Russian President Vladimir Putin. The European Commission is legally required to recalculate the price ceiling after July 15, but the new cap would take effect only on August 1, allowing the executive some flexibility.
For the third consecutive day, EU ministers or ambassadors met but failed to agree on a 21st round of sanctions over Russia’s four-year war against Ukraine.
The EU is struggling to maintain unity on the penalties even as Ukraine counteracts Russia with a drone campaign causing heavy casualties and deep strikes that have disabled several oil refineries. Kyiv’s resistance has led to widespread fuel shortages in Russia, forcing Moscow to search global markets for diesel imports.
All for one
Since sanctions require unanimity among the EU’s 27 member states, national governments can demand concessions. Former Hungarian Prime Minister Viktor Orbán was known for blocking such support for Ukraine, but it was hoped Budapest would be less obstructive after Péter Magyar replaced him earlier this year.
Now, however, Austria and Greece have disrupted progress.
Vienna proposed a deal where Austria’s Raiffeisen Bank would be compensated for the illegal €2.44 billion expropriation of its Russian operations. This would involve seizing and selling €2.1 billion in frozen Russian assets in Austria; the property ultimately belongs to a company owned by Russian oligarch Oleg Deripaska, who benefited from Raiffeisen’s expropriation.
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