EU again fails to agree on Russian oil price cap

Yesterday, the EU countries again failed to agree on the establishment of a specific «ceiling» of prices for Russian oil. The diplomats discussed the introduction of a limit on oil prices from the Russian Federation at $62 per barrel, but the negotiations reached an impasse. 

Poland and the Baltic States consider this price too high. Earlier, the European Commission had already proposed a price level of $65, but Poland also disagreed with this limit. In turn, countries with a developed structure of maritime transport, such as Greece and Malta, do not want a «ceiling» of prices below $70. And since the unanimous consent of all EU countries is necessary for the final approval of Russian oil prices, the negotiations again failed. 

At the meeting of the countries, a proposal was also put forward to agree on a 45-day transition period before the possible adoption of a «ceiling» for Russian oil prices, as well as to soften the requirements for sea transportation of oil. The transition period will apply to raw materials loaded before December 5 and unloaded before January 19.

Recall that in September, the G7 countries approved a plan to introduce a price limit on Russian oil, hoping to limit the budget revenues of the Russian Federation from the sale of energy resources. Thus, from December 5, EU and UK companies will be able to provide sea transportation and insurance services, financial and brokerage services related to Russian oil only if it is purchased at a price below a certain level. Similar restrictions for petroleum products will come into force on February 5, 2023.