EU proposes dropping Russian oil price cap to $45 - FT
Photo: EU wants to lower the price cap for Russian oil to $45 (Getty Images)
The European Commission and leading EU countries support lowering the price cap on Russian oil from $60 to $45 per barrel as part of a new sanctions package against Russia, due to its war against Ukraine, Financial Times (FT) reports.
Brussels' position and G7 split
Sources familiar with discussions on the EU's 18th sanctions package said the proposal is backed by France, Germany, Italy, and the United Kingdom.
However, not all EU countries and G7 partners are ready to support such a measure. At the G7 Finance Ministers’ meeting in Banff, Canada (currently holds the G7 Presidency), Canada proposed including a point on lowering the price cap in the final statement. However, according to sources, the initiative was blocked by US Treasury Secretary Scott Bessent.
In the final G7 communiqué, the group only pledged to "consider all possible options for increasing pressure" in the event of no ceasefire.
Disagreements within the EU
Some EU countries that had previously been skeptical of the oil price cap, namely Hungary and Greece, are still evaluating the initiative, officials said. European Commission Spokesperson Anitta Hipper stated: "We are ready to increase pressure on Russia from the European side and hope that other partners will also join."
What's next
Discussions on the new sanctions package are ongoing. The EU and G7 countries aim to coordinate tougher measures in response to Russia's continued aggression against Ukraine.
Price cap
The price cap was designed to limit the amount of money Russia earns from oil sales while preventing a sharp rise in global oil prices. The $60 cap went into effect in December 2022.
Last week, the United Kingdom called on its G7 allies to lower the price cap on Russian oil.
