EU Freezes Oil Price Cap, Expands Sanctions Against Russia

The European Union has adopted its 21st package of sanctions against Russia. This new package freezes the oil price cap, which was previously set at USD 44.10 per barrel, and suspends the automatic adjustment procedure until July 14, 2027.

The EU has also introduced a temporary exemption for Russian liquefied natural gas (LNG) sales to third countries, including Japan and South Korea, until March 31, 2028. This exemption applies to LNG transfers and purchases executed under valid long-term contracts concluded before February 24, 2022.

The new package expands the transaction ban on banks and crypto-asset service providers targeting Russia-related entities, adding 33 Russian banks and 17 crypto-asset service platforms to the list. It also introduces a new ban on third countries whose crypto-asset service providers systematically facilitate sanctions evasion.