EU states failed to agree on a new sanction package for Russia, the Politico news outlet reported Friday.

Latvia and Lithuania refused to support the package as it also extended a provision that permits Western companies to keep working in Russia despite existing sanctions, it said, citing diplomats familiar with the issue.

Critics of the provision, which was initially designed to benefit companies, said they want to divest from Russia but cannot for various reasons. They said the benefit is being abused and gives companies too much political cover to stay in Russia, said the US news outlet.

Politico said Slovakia is seeking to extend another sanctions exemption that enables it to export refined Russian oil to neighboring Czech Republic, which announced it wants the arrangement to end.

The sanctions package is expected to come up for discussion when EU foreign ministers meet Dec. 16.