The European Union plans to recommend a reduction in the price cap on Russian seaborne oil from the current $60 per barrel to $50, as part of its proposed 18th sanctions package against Moscow. The proposal is expected to be presented at the upcoming G7 finance ministers’ meeting in Canada.
EU Commissioner for Economy Valdis Dombrovskis confirmed the move on Monday, although he did not disclose a specific figure. However, EU officials involved in the talks indicated that the target is a $50 per barrel cap.
When asked if he would present the proposal during the G7 meeting, Dombrovskis responded, “Yes.” He added, “This is an issue we raised from the Commission’s side in the context of the 18th sanctions package. I expect other G7 partners to show interest in this matter as well, and that certain discussions will take place.”
The G7 group—comprising the United States, Canada, the United Kingdom, France, Germany, Italy, and Japan—established the oil price cap in December 2022. The mechanism restricts trade of Russian oil transported by tankers if it exceeds $60 per barrel. It also prevents global shipping, insurance, and reinsurance firms from supporting Russian oil shipments unless the oil is priced below the cap.
The European Commission, alongside the president of the Eurogroup, takes part in G7 finance minister meetings, playing a key role in shaping coordinated economic responses to geopolitical developments.
