ILI Head on Suspilne: EU’s 21st sanctions package – oil price cap remains the key issue

The European Union may soon adopt a robust 21st package of sanctions against Russia, although negotiations over certain provisions remain challenging. One of the most contentious issues is lowering the price cap on Russian oil. This was stated by Tetiana Khutor, Head of the Institute of Legislative Ideas (ILI), during an interview on Suspilne.

“One of the key issues remains setting a new price cap on Russian oil. A decision must be made before the pricing mechanism changes; otherwise, the cap could increase to $70 per barrel. That is why discussions are currently focused on either maintaining the current level or finding a compromise solution,” the expert said.

She emphasized that the new package goes far beyond oil-related restrictions. It includes expanding individual sanctions to cover more than 250 people, imposing restrictions on around 90 Russian banks, 11 cryptocurrency platforms, and more than 30 vessels belonging to the so-called "shadow fleet." It also introduces additional restrictions on maritime services and liquefied natural gas (LNG) operations.

“This could become a very strong and comprehensive sanctions package. The key is ensuring that it is adopted,” Tetiana Khutor stressed.

The Head of ILI also commented on the prospects of a new U.S. sanctions bill. According to her, although the bill has been softened compared to its original version, it remains sufficiently tough.

“It is very important that President Trump supports the adoption of this bill. Even in its current form, if passed, it would significantly strengthen the U.S. sanctions policy against Russia,” Tetiana Khutor noted.

In her view, U.S. lawmakers should not delay the vote, as the political situation in the United States could change rapidly.

“It is crucial that this bill is adopted as soon as possible. While there is mutual political support for this decision, there is no reason to postpone it,” the Head of ILI concluded.

The full recording of the broadcast can be watched here: