DATA & FIGURES

The original proposal by the European Commission was to freeze the oil price cap at $44.10 per barrel for six months. However, this was later reduced to three months and then to just seven days, to July 23. The package is expected to include the blacklisting of over 250 Russian individuals and firms, as well as vessels believed to be part of the Russian shadow fleet. Austria is seeking 2.5 billion euros ($2.9 billion) in compensation for the expropriation of Raiffeisen bank's Russian operations.

THE SCENARIO

The EU's sanctions package is part of a broader effort to weaken Russia's economy and military prowess in response to its invasion of Ukraine. The package is expected to have significant implications for the global economy, particularly in the energy sector. The EU's inability to reach a consensus on sanctions has also raised concerns about the bloc's ability to respond effectively to the ongoing conflict in Ukraine.

DIRECT QUOTE

"The package is like the Emmental, full of holes." — EU Diplomat

BBN INSIGHT

The EU's struggle to agree on sanctions against Russia has significant implications for the global economy and the ongoing conflict in Ukraine. The delay in imposing new sanctions has given Russia a temporary reprieve, allowing it to continue exporting oil and gas to the EU. However, the EU's sanctions package is expected to have a significant impact on Russia's economy and military prowess in the long term. The Positive Side: The EU's sanctions package is expected to weaken Russia's economy and military prowess, making it more difficult for the country to continue its aggression in Ukraine. The Negative Side: The delay in imposing new sanctions has given Russia a temporary reprieve, allowing it to continue exporting oil and gas to the EU and undermining the EU's efforts to reduce its dependence on Russian energy.

MARKET REACTION

The delay in imposing new sanctions has had a limited impact on the market, with Brent crude prices rising by 0.93% to $88.92 per barrel. However, the ongoing conflict in Ukraine and the EU's efforts to reduce its dependence on Russian energy are expected to have a significant impact on the market in the long term.