EU negotiators on Friday failed to finalize new restrictions on companies and oil tankers aiding Russia’s war in Ukraine, three EU diplomats familiar with the talks told POLITICO.
The holdup came after two EU countries, Latvia and Lithuania, refused to back the package because it also extended a provision allowing Western firms to keep working in Russia despite existing sanctions.
The clause was initially intended to benefit companies saying they want to divest from Russia but can’t for various reasons. Critics say the loophole is being abused and giving companies too much political cover to stay in Russia.