US pressures EU on price cap for Russian oil: Reports
Politico reports that the United States is pressuring European Union member countries to force a price cap on Russian oil.
The United States is pressuring European Union member countries to force a price cap on Russian oil, Politico reported on Monday.
Last week, media reports stated that the EU was negotiating to introduce a price ceiling for Russian oil of between $65 and $70 per barrel, in an attempt to reduce Russia's revenue from its oil exports, as part of anti-Russia sanctions amid the war in Ukraine.
However, Reuters reported that "Poland, Lithuania and Estonia believe the $65-$70 per barrel would leave Russia with too high a profit, since production costs are around $20 per barrel." The talks are expected to continue on Monday.
Read: EU delays, eases Russian oil price cap before implementation
The EU had been experiencing "pressure from the US" to agree on an oil price, a senior diplomat from a Mediterranean member country told Politico, which added that the EU was under increased pressure from the G7 members too.
If agreed on, the EU price cap is scheduled to come into force on December 5, synergizing with a similar UK ban and another on seaborne imports of Russian oil.
Western nations have been trying to find ways to reduce Russia's income from oil and gas exports since the start of the war in Ukraine. In September, the G7 finance ministers confirmed their intention to impose a price cap on Russian oil, urging all countries to support the initiative.
In October, the EU Commission confirmed an eighth sanctions package against Russia on Thursday, which involves both economic and personal restrictions. The new package set a foundation for the G7's implementation of the potential oil price cap, with the EU Commission's statement relaying that the package "marks the beginning of the implementation within the EU of the G7 agreement on Russian oil exports. While the EU's ban on importing Russian seaborne crude oil fully remains, the price cap, once implemented, would allow European operators to undertake and support the transport of Russian oil to third countries, provided its price remains under a pre-set 'cap'."
In turn, Russia has pledged to stop supplying oil and gas to countries that impose price ceilings.