European Union negotiators failed last week to finalise new restrictions on companies and oil tankers contributing to Russia’s war against Ukraine, three EU diplomats briefed on the talks told Politico.
The obstacle came after Lithuania and Latvia refused to back the package because it included exceptions for Western companies to continue working in Russia.
The two Baltic countries blocked a clause that would have allowed EU companies to continue operating in Russia and importing and exporting already banned goods, two of the diplomats said.
The clause was originally intended to help companies that say they want to withdraw from Russia but for various reasons are unable to do so. Critics say the loophole is being abused and provides too much political cover for companies to stay in Russia.
The rest of the package focuses on sanctions against companies and vessels that circumvent existing EU sanctions against Russia. The draft seen by Politico contains plans to more than double the blacklist of oil and gas tankers. This would bring the list to a total of 75 vessels.
Discussions on the sanctions package in question are due to resume at the EU foreign ministers’ meeting on December 16.
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