Six EU states urge to double down on ineffective Russia sanctions

(MENAFN) Six EU member states, including Sweden, Denmark, Finland, Latvia, Lithuania, and Estonia, have urged the European Commission to lower the $60-per-barrel price cap on Russian oil, stating that the current measure has failed to reduce Moscow’s revenues as intended. The price cap, introduced by the G7 two years ago, was designed to limit Russian income from oil exports while preventing a global price shock.

Despite the cap, Russia has been able to circumvent the sanctions by rerouting oil exports to Asia, particularly to China and India, and using a shadow fleet of transport vessels. The six EU countries argue that a lower price cap could increase the impact of sanctions without triggering supply issues, citing improved global oil supply and Russia's reliance on energy exports. The move follows ongoing concerns that Western sanctions, including insurance bans, have not been effective in curbing Russian oil exports.

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