EU Faces Hurdles in Latest Russia Sanctions Package

The European Union's proposed 18th sanctions package against Russia faced another hurdle on Tuesday as it failed to gain approval from member states. EU foreign chief Kaja Kallas, speaking after a meeting with EU foreign ministers in Brussels, expressed her disappointment over the delayed approval but remained optimistic about concluding negotiations by Wednesday.

Slovakia has emerged as the primary holdout, blocking the sanctions package until its concerns over a separate EU plan to phase out imports of Russian gas by January 1, 2028, are addressed. This proposal forms part of a broader strategy to reduce the bloc's energy dependency on Moscow in light of the ongoing conflict in Ukraine.

The proposed sanctions aim to curb Moscow's revenue from energy exports, target its banks, and impose further restrictions on its military sector. Notably, the package includes a contentious element—a floating price cap on Russian oil set at 15% below the average market prices of the previous quarter. While most EU states agree on the package, one state maintains reservations about this proposed price cap, insiders revealed to Reuters.

(With inputs from agencies.)