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EU Reportedly Postpones New Russia Sanctions, Freezes Oil Price Cap Until July 23

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The European Union delayed approval of its 21st sanctions package against Russia and extended the current Russian oil price cap until July 23, according to multiple media reports on Wednesday.

The temporary extension keeps the oil price cap at about $44.10 per barrel, preventing it from automatically increasing to about $58 per barrel while member states continue negotiations on the broader sanctions package.

The proposed measures seek to further curb Russia's energy revenues by tightening restrictions on liquefied natural gas. They include limits on re-exporting Russian LNG through the European Union and restrictions on sales of LNG tankers to Russia, according to the reports.

The European Commission had proposed freezing the oil price cap for six months, but member states instead agreed to extend the current limit for one week while officials assess Greece's request and continue negotiations.

The European Union introduced a floating price cap last year, resetting it every six months at 15% below the average price of Russia's Urals crude.

Officials adopted the mechanism after the earlier $60-per-barrel cap proved less effective at reducing Moscow's oil revenue.

Urals crude traded around $55/bbl for most of the month before climbing to nearly $66/bbl on Wednesday as the US-Iran conflict lifted global oil prices, increasing pressure on the European Union to reach a sanctions agreement, the reports said.

European Commission did not immediately reply to' request for comment.

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