EU considers replacing Russian oil price cap with full ban on maritime services - Bloomberg
Kyiv • UNN
The European Union may replace the price cap on Russian oil with a ban on maritime services. This would strengthen sanctions against Moscow and simplify their application.
The European Union is considering a proposal to replace its price cap on Russian oil with a ban on maritime services as part of the latest package of sanctions targeting Moscow over its war against Ukraine. This was reported by Bloomberg, writes UNN.
Details
If EU members support the decision, European companies could be prohibited from providing services such as insurance and transportation, which are necessary for the shipment of Russian oil, regardless of the commodity's price, according to sources familiar with the discussions.
As the publication notes, a full ban would significantly strengthen the restrictions imposed on Russian oil and simplify the enforcement of sanctions, according to sources who wished to remain anonymous due to the discussion of internal negotiations.
A spokesperson for the European Commission, which is responsible for EU sanction actions, declined to comment.
Under pressure
Russia's oil and gas revenues in 2025 fell to their lowest level in five years
The price cap on Russian oil is currently set at $44.10 per barrel as of February 1. The price-setting mechanism, which is reviewed every six months, is designed so that the price threshold is 15% below the average market price for Urals oil.
EU members have been informed about the potential content of the latest proposed sanctions package, which will be the twentieth since Russia's full-scale invasion of Ukraine in 2022. The EU plans to approve the package by the end of next month.
The bloc's sanctions require the support of all member states for adoption, and several capitals have already spoken out against replacing the price cap with a services ban, sources said.
Most of the EU's attention is focused on limiting Russia's oil revenues, which are considered critical for sustaining the Kremlin's war against Ukraine and stabilizing its economy. Russian oil flows have fallen to their lowest level since the invasion due to US and EU sanctions and low prices. In recent days, prices have risen due to threats by US President Donald Trump to launch military strikes on Iran if the country does not conclude a nuclear deal.
The EU is expected to propose additional restrictions on Russian banks and oil companies, as well as on cryptocurrency services and financial structures in third countries that help Moscow circumvent the bloc's sanctions, sources said. The sanctions will also include more "shadow fleet" vessels.
The bloc is also considering implementing an anti-circumvention tool for the first time, which would lead to a ban on the export of machine tools and certain radio equipment to Kyrgyzstan, according to sources.
The proposed package includes new trade restrictions for more companies, goods needed by Russia for weapons production, and restrictions on the import of several Russian metals, the sources noted.