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EU Proposes 21st Sanctions Package, Freezing Russian Oil Price Cap

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The European Commission proposed its 21st sanctions package against Russia on Tuesday, freezing the oil price cap mechanism until January 2027.

EC President Ursula von der Leyen noted that the current pricing mechanism was not engineered to absorb major supply chain shocks, such as the ongoing maritime bottlenecks caused by the recent closure of the Strait of Hormuz.

The emergency pause aims to stabilize global oil markets and protect revenues from recent disruptions following the closure of the Strait of Hormuz.

The European Union is blacklisting 30 additional tankers, expanding its primary sanctions target list to well over 600 shadow fleet vessels.

The regulations will now penalize third-party service vessels providing mid-sea bunkering, refueling, and essential maritime assistance to these rogue tankers.

Furthermore, the restrictions are moving downstream to explicitly target land and marine infrastructure, threatening transaction bans against specific ports, airports, and refineries caught trading or processing Russian crude oil.

The Commission has also barred the future sale and resale of liquefied natural gas tankers to Russian entities, mirroring existing restrictions on crude oil carriers and severely disrupting Moscow's long-term Arctic export ambitions.

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Oil & Energy

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Oil & Energy

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