Reuters: European Commission to propose floating price cap on Russian oil

The European Commission is considering changing its approach to the price cap on Russian oil by introducing a floating limit. The move is seen as a way to unblock approval of the 18th package of sanctions.

Source: Reuters, citing four EU diplomats, as reported by European Pravda

Details: Reuters reports that the European Commission is developing a mechanism to adjust the cap on Russian oil in line with changes in global oil prices.

One of the sources told the agency that the mechanism is still under development and envisages a more automated process for revising the cap to keep it aligned with global price trends.

It is not yet clear what the cap would be, but one of Reuters’ sources noted that the initial limit would likely be slightly above US$45 per barrel.

Background:

• The European Commission had previously proposed reducing the oil price cap from US$60 to US$45 per barrel as part of the EU’s 18th sanctions package against Russia.
• However, the plan was dropped after the EU and the UK failed to gain support from US President Donald Trump.
• It remains unclear whether EU ambassadors will agree on the revised cap mechanism.
• Slovakia is currently opposing the 18th package of sanctions due to concerns about the EU’s plan to phase out Russian energy imports by 2027.

Support Ukrainska Pravda on Patreon!