EU Moves Closer to Tightening Russian Oil Price Cap in Fresh Sanctions Push
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The European Union is on the verge of finalizing a new sanctions package against Russia, which includes a significant reduction in the price cap on Russian oil exports. According to sources familiar with the negotiations, EU member states are nearing consensus on lowering the current $60-per-barrel ceiling, a move aimed at further squeezing Moscow’s energy revenues while minimizing disruptions to global oil markets. The existing price cap, implemented in December 2022 by the G7 and EU, was designed to curb Russia’s ability to finance its war in Ukraine while keeping oil flowing to avoid price spikes. However, critics argue that the current threshold remains too high, allowing Russia to continue generating substantial income. The proposed adjustment seeks to strike a balance between intensifying economic pressure and maintaining stability in energy supplies. Diplomats suggest the revised cap could be set between $50 and $55 per barrel, though the final figure remains under discussion. The measure is expected to be part of a broader sanctions package targeting Russian trade, technology imports, and individuals linked to the Kremlin. Additional reporting from Reuters indicates that the EU is also considering stricter enforcement mechanisms to prevent evasion of the price cap, including tighter scrutiny of shipping and insurance practices. Meanwhile, analysts warn that deeper cuts could provoke retaliatory measures from Russia, such as voluntary production cuts, which might tighten global supply. The decision comes as Western allies seek to maintain unity in their response to Russia’s invasion, now in its third year. While the U.S. has pushed for more aggressive restrictions, some EU nations—particularly those reliant on Russian crude—have advocated for caution to avoid economic blowback. A formal agreement could be reached as early as next week.
