EU sanctions against Russia

The deal is expected to become official on Wednesday as European Union countries agree on a new Russian sanctions package that includes ceiling price support for oil sales to third countries, their sources said.

EU ambassadors on Tuesday night discussed ways to reduce the new package's impact on countries with large shipping industries, sources said.

Accordingly, Greece, Cyprus and Malta have expressed concerns about restrictions on the transport of Russian oil and are pushing for assurances on the effectiveness and potential impact of the new mechanism.

Joseph, the EU's Foreign Policy Chief, told MPs on Wednesday that he expects an agreement to be reached later in the day on sanctions against "sectoral and targeted persons".

“This will further constrain Russia's export capacity and the relationships that the industry has advanced, especially in the technological sector,” Borrell said.

An exemption will be applied to oil sales below the specified level.

While the sanctions are expected to impose new bans on the transport of Russian oil, restrictions imposed on the services required to transport it, exemptions will be granted for oil sales priced below the level set by the G-7 and a coalition of other countries. The compromise agreed on Tuesday will make the entry into force of the sanctions conditional on their acceptance by the G-7 countries.

The sanctions package will be formally adopted by the union on Wednesday, excluding last-minute objections from national governments.

The broader sanctions package will target many individuals and organizations, including senior Russian ministry officials and people involved in the holding of referendums that have recently garnered a lot of backlash.

Technology sectors will also be targeted

However, access to aerospace products, electronic components and certain chemicals is expected to be restricted to deprive the Russian military of key technologies.

The EU will need to amend existing legislation to allow for an oil price cap. In June, EU countries agreed to impose a full ban on insurance and financial services for oil transported by sea, while shipping of oil was exempted from restrictions. Most of these bans will begin on December 5, alongside the EU ban on purchasing Russian crude oil.

The G-7, which announced its support for the price ceiling for oil earlier this month, said that it wanted an agreement before this date.