EU to propose G7 lower Russian oil price cap to $50 per barrel – Reuters
Photo: EU Commissioner for Economy Valdis Dombrovskis (Getty Images)
The European Union will propose this week that G7 finance ministers lower the current $60-per-barrel price cap on Russian oil to $50 as part of a new sanctions package against Russia, said EU Commissioner for Economy Valdis Dombrovskis, Reuters reports.
While Dombrovskis did not specify the exact level the EU wants the cap reduced to, EU officials familiar with the discussions said the bloc will propose lowering the limit from $60 to $50 per barrel.
According to the Commissioner, the EU plans to formally present the proposal at the G7 finance ministers’ meeting taking place in Canada this week.
"This is something which we flagged from the Commission's side in the context of the 18th sanctions package. I would expect some interest also from other G7 partners in this regard and some discussion," he added.
Decrease in Russian oil prices
The price cap for Russian oil was set by the EU and the Group of Seven (G7) in December 2022. The price is currently $60 per barrel.
In February, Western media reported that the G7 countries were planning to revise the price cap on Russian oil to reduce Russia's profits. However, no changes were made at the time.
Meanwhile, Ukraine proposes to set a price cap on Russian oil at $30 per barrel. This would significantly undermine Russia’s ability to finance its war.
