EU Extends Oil Price Cap to July 23 Greece Blocks Sanctions

The European Union has extended its price cap on Russian oil for one week after Greece blocked unanimous approval of a new sanctions package, citing concerns over a proposed ban on transporting Russian liquefied natural gas. On July 15, EU ambassadors agreed to maintain the existing cap of 44.10 euros per barrel until July 23, averting a scheduled increase that would have significantly boosted Russian revenue due to high global oil prices.

The extension was necessary because Greece objected to a key element of the EU's proposed 21st sanctions package against Russia, which requires consensus from all 27 member states. The primary point of contention is a measure that would ban EU companies from transporting Russian LNG to third countries. Greek officials argued this would severely damage the business of Dynagas, a major Greek shipping company owned by magnate George Prokopiou. Dynagas operates a fleet of specialized Arc7 ice-class tankers built to serve the Yamal LNG project in the Russian Arctic. Greece contends these vessels cannot be easily redeployed on other routes and that the ban could force their sale to non-Western actors.

The broader sanctions package, which has faced...