EU Delays Lowering Price Cap on Russian Oil

(MENAFN) The European Union has reconsidered its plan to decrease the price ceiling on Russian seaborne oil sales, European Commission President Ursula von der Leyen announced, according to a news agency.

This initiative was meant to be a key element in the bloc’s newest sanctions package against Russia.

After the Ukraine conflict intensified in 2022, the EU along with G7 countries implemented a price cap and embargo on imports of Russian crude oil and refined petroleum products, aiming to reduce Moscow’s revenue streams.

The European Commission had suggested dropping the price cap from USD60 to USD45 per barrel.

Von der Leyen explained on the sidelines of the G7 summit in Alberta, Canada, as reported by the news agency, that the existing limit “had little effect, but in the last days, we have seen that the oil price has risen [and] the cap in place does serve its function.”

She added, “So for the moment, there’s little pressure on lowering the oil price cap.”

International crude oil prices had previously fallen below the G7 cap but surged recently after Israel launched missile strikes against Iran.

On Wednesday, Brent crude for August delivery was priced at USD76.36 per barrel, while West Texas Intermediate for July delivery stood at USD74.82 per barrel.

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