Mercosur, which was agreed last year but is yet to secure final approval from EU member states, has been dubbed a “cars for cows” trade deal. The EU wants to export industrial goods and Mercosur its meat, soyabeans and cereals.

The European Union adopted fresh sanctions against Russian oil interests on Monday, targeting traders Murtaza Lakhani and Etibar Eyyub for helping Moscow to circumvent Western sanctions on crude exports that help to fund Russia's war in Ukraine.

The European Union’s effort to tap Russian assets as the main source of international funding for Ukraine is becoming “increasingly difficult” as leaders struggle to agree on a framework, the bloc’s top foreign policy official said.