EU discusses freezing oil price caps for Russia amid war with Iran
Kyiv • UNN
The European Union is considering fixing the price limit on Russian oil due to rising fuel costs. These measures could be included in the 21st package of sanctions against the aggressor.
The European Union is considering the possibility of temporarily freezing the current price cap on Russian oil due to a sharp rise in global prices amid the war with Iran and shipping restrictions in the Strait of Hormuz. This was reported by Bloomberg, according to UNN.
Details
Currently, the price cap for Russian Urals crude oil stands at $44.10 per barrel. It is automatically reviewed every six months and must remain 15% below the average market value. According to the agency's sources, the next review in July could raise the limit to at least $65 per barrel.
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In Brussels, several options are being discussed: leaving the current limit unchanged, postponing the automatic increase until the end of the year, or capping the new threshold at $60, a level previously agreed upon by the G7. The restriction prohibits European companies from insuring and transporting Russian oil sold above the established limit.
According to Bloomberg, these measures could be included in the EU's 21st package of sanctions against Russia. Restrictions are also being considered for additional banks, oil traders, crypto operators, and about 20 vessels of the so-called "shadow fleet" that Moscow uses to circumvent oil sanctions. A final decision will require the unanimous support of all EU member states.