BRUSSELS, July 13 (Reuters) - European Union envoys are

on the verge of agreeing an 18th package of sanctions against

Russia for its full-scale invasion of Ukraine that would include

a lower price cap on Russian oil, four EU sources said after a

Sunday meeting.

The sources said all the elements of the package had been

agreed, although one member state still has a technical

reservation on the new cap.

The sources - speaking on condition of anonymity to discuss

confidential talks - said they expect to reach a full agreement

on Monday, ahead of a foreign ministers' meeting in Brussels the

following day that could formally approve the package.

The sources said they had also agreed to a dynamic price

mechanism for the price cap. On Friday, the European Commission

proposed a floating price cap on Russian oil of 15% below the

average market price of crude in the previous three months.

One of the sources said the initial price would be around

$47 a barrel based on the average price of Russian crude for the

last 22 weeks minus 15%. Further, the price would be revised

based on the average oil price every six months instead of the

proposed three months.

Slovakia - which has held up the proposed package - is still

seeking reassurances from the European Commission on its

concerns about plans to phase out Russian gas supply but it has

agreed to the new measures, the sources said.

Sanctions require unanimity among the EU's member countries

to be adopted.

The Group of Seven (G7) price cap, aimed at curbing Russia's

ability to finance the war in Ukraine, was originally agreed in

December 2022. The European Union and Britain have been pushing

the G7 to lower the cap for the last two months after a fall in

oil futures made the current $60 a barrel level largely

irrelevant.

The cap bans trade in Russian crude oil transported by

tankers if the price paid was above $60 per barrel and prohibits

shipping, insurance and re-insurance companies from handling

cargoes of Russian crude around the globe, unless it is sold for

less than the price cap.

The Commission proposed the package in early June, aimed at

further cutting Moscow's energy revenues, including a ban on

transactions with Russia's Nord Stream gas pipelines, and

financial network that helps it circumvent sanctions.

Another one of the sources said the new package will list a

Russian-owned refinery in India, two Chinese banks, and a flag

registry. Russia has used flags of convenience for its shadow

fleet of ships and oil tankers.