The European Commission (EC) this week will propose a floating price cap on Russian oil as part of a new package of sanctions to try to overcome the resistance of some member states. This was reported by Reuters, citing four unnamed EU diplomats, informs UNN.
Details
It is noted that the EC proposed to lower the Group of Seven (G7) price cap from $60 per barrel to $45 per barrel in June in its 18th package of sanctions against Russia. The G7 price cap, aimed at limiting Russia's ability to finance the war in Ukraine, was initially agreed upon in December 2022.
Great Britain and the EU failed to secure the support of US President Donald Trump for lowering the price cap at the G7 leaders' meeting in Canada in June. Oil prices briefly rose to almost $80 per barrel during the 12-day war between Israel and Iran in June, before falling back to $60. Now the EU is moving forward independently
Russia's oil and gas revenues in June fell to a 2-year low03.07.25, 20:30 • [views_1198]
The EU reported that the EC is developing a mechanism that will adjust the price cap on Russian crude oil based on changes in the global price of energy resources.
The law is still being discussed, in particular, a more automated process for reviewing the price cap to adapt it to world crude oil prices is envisaged. ... It is unclear what the ceiling will be, but the starting point will be slightly more than $45
At the same time, the authors add, even if EU ambassadors manage to agree on a revised price cap mechanism, Slovakia opposes blocking the sanctions package due to its concerns about the EU's plan to stop importing Russian energy carriers by 2027. At the same time, the EU needs unanimity to adopt sanctions.
Recall
According to Reuters, EU governments demand that Brussels keep national plans for phasing out Russian oil and gas by the end of 2027 secret. This is due to the desire to avoid influencing market prices and disclosing confidential information.