Bulgaria drops Kirill from EU sanctions as oil cap stalls

Bulgaria successfully lobbied to remove Patriarch Kirill from the European Commission’s proposed 21st sanctions package against Russia. Foreign Minister Velislava Petrova-Chamova secured the removal during a Sunday meeting of European ambassadors. She warned that targeting the religious leader without economic impact risked fuelling anti-EU sentiment in Orthodox nations.

“When you have sanctions that have purely symbolic measure but no economic consequence on Russia, what you are risking is that, in a country – an Eastern Orthodox country, such as Bulgaria – is creating the environment for brewing anti-European rhetoric,” Petrova-Chamova said. “That's why we're not supporting it, and that's why we we're really happy that in the end the name was dropped out.”

Patriarch Kirill has labelled Russia’s full-scale invasion a “holy war” and been accused of condoning the fighting. Former Bulgarian Foreign Minister Daniel Mitov previously claimed Kirill used his authority to justify Russian aggression and the killing of civilians. The Bulgarian and Russian Orthodox churches share deep-rooted cultural and historical links despite being autonomous.

The broader sanctions package, which European Commission President Ursula von der Leyen proposed on 9 June, failed to win approval at a foreign affairs council meeting on Monday. It will now be renegotiated at an emergency meeting of ambassadors on Tuesday afternoon. Von der Leyen had said the package focused on high-impact sectors including energy, financial services, crypto, and trade.

The delay carries significant economic risks. If the package is not finalised by 15 July, the EU’s oil price cap mechanism will automatically jump from €44 to a possible €58 per barrel. This increase stands to benefit the Kremlin as the war in Iran pushes the price of crude up.

The 15 July deadline coincides with Petrova-Chamova’s travel to Kyiv to discuss energy security with senior Ukrainian officials. She said she was “not afraid” of arriving without a completed oil cap mechanism. “I'm more thinking about how we can work more together to help Ukraine face the challenges in front of it, which are going to be even higher as the winter approaches,” she said.

Israeli settlement trade

Monday’s ministerial meeting also addressed a two-page European Commission paper on curbing trade with illegal Israeli settlements. EU foreign policy chief Kaja Kallas said ministers overwhelmingly backed the restrictions, noting the settlements undermine a two-state solution. A 2024 International Court of Justice advisory opinion previously found the settlements unlawful.

However, Petrova-Chamova stopped short of endorsing the plans due to legal uncertainties. “They're not proposals really, they're options, and that's slightly different because there's not very clear agreement between the legal service of the Commission and the Council about the ability to adopt those with unanimity,” she said. Ambassadors will now refine the plans, though diplomats fear the next formal ministerial gathering in October could be derailed by upcoming Israeli legislative elections.