Brussels, June 20. The European Union has suspended its consideration of lowering the price cap on Russian oil amid rising tensions in the Middle East, Politico reports, citing European diplomats.
According to sources, during this week’s G7 summit, leaders of the Group of Seven reached a consensus to temporarily abandon plans to revise the price cap in order to avoid further destabilizing the global energy market.
The EU will not move forward with plans to lower the price cap on Russian oil, given the risk of price spikes due to the conflict between Israel and Iran, Politico quotes one diplomat as saying.
Previously, the European Commission had proposed reducing the current price ceiling on Russian oil from $60 to $45 per barrel. European Commission President Ursula von der Leyen emphasized that the final decision rests not only with the EU but also with the G7 countries.
The $60 per barrel cap was introduced on December 5, 2022, by the G7 countries, the EU, and Australia, and applies to seaborne shipments of Russian oil. Similar restrictions on oil products came into effect on February 5, 2023.
In response, Moscow issued a decree banning the supply of oil and petroleum products to foreign entities whose contracts explicitly or implicitly comply with the price cap mechanism.
