S'abonner

European Union pushes G7 to lower Russian oil price cap to $50

Brussels aims to persuade the G7 to reduce the Russian oil price cap to $50 per barrel, as part of negotiations on the next sanctions package targeting Moscow’s energy revenues.

Share:

The European Commission has announced its intention to propose a reduction in the price cap on seaborne Russian oil, currently set at $60 per barrel. This proposal, led by European Commissioner for Economic Affairs Valdis Dombrovskis, will be presented at the G7 Finance Ministers’ meeting taking place this week in Canada, according to Reuters on May 19.

This initiative is part of the European Union’s ongoing development of its 18th sanctions package against Russia. Since December 5, 2022, a coalition formed by the G7, the European Union and Australia has enforced a $60 price cap on Russian oil shipments, linking access to maritime transport, insurance and reinsurance services to compliance with this threshold.

Member states call for a stricter threshold

Several EU member states, including Poland, Estonia and Lithuania, are advocating for a significantly lower price cap, arguing that the current level fails to effectively curb Moscow’s energy revenues. Conversely, countries such as Greece, Cyprus and Malta oppose any reduction, citing the strategic importance of their maritime sectors.

Ukrainian President Volodymyr Zelensky expressed similar views to those of the Baltic states, calling for a price cap between $30 and $40 per barrel. “The proposed ceiling, around $60, seems artificial to me,” the Ukrainian president stated during a press conference, according to Reuters on November 26.

Toward reinforced coordination with G7 partners

Valdis Dombrovskis indicated that the proposal is part of ongoing discussions with other G7 members, noting that he expects “some interest” from international partners. He added that the goal is to include the revised cap in the 18th package of measures currently under negotiation.

In parallel, Finnish Foreign Minister Elina Valtonen confirmed that work on this new package would begin as soon as the 17th package is finalised. These measures are designed to increase economic pressure on Russia without creating significant disruptions in global markets.

Kyiv questions the current cap’s effectiveness

According to EnergyNow Media, Ukrainian authorities argue that Russia continues to derive substantial revenue from its crude oil exports despite the existing caps. The Zelensky administration believes a lower threshold is necessary to meaningfully impact oil export earnings, which constitute a major source of funding for Russia’s war effort.

The European proposal emerges amid persistent divisions within EU institutions and among G7 members, against a backdrop of contrasting economic interests and rising geopolitical tensions.

  • Popular on energynews.pro
Chestnut Carbon secures pioneering non-recourse financing of $210mn for afforestation in the U.S.
Turkey proposes new expanded energy deal to Iraq with oil, gas and electricity
NANO Nuclear reaches key milestone with prototype induction pump for reactors
Iberdrola raises $5.9 billion to strengthen its grids in the UK and the US
Kazakhstan launches oil refining strategy to 2040 with $5bn in investments
Uganda opens a mission in Vienna to strengthen its nuclear partnerships
Uganda is relying on a diplomatic presence in Vienna to facilitate technical and commercial cooperation with the International Atomic Energy Agency, supporting its ambitions in the civil nuclear sector.
Saudi Arabia and Syria launch a strategic agreement for regional energy cooperation
The governments of Saudi Arabia and Syria conclude an unprecedented partnership covering oil, gas, electricity interconnection and renewable energies, with the aim of boosting their exchanges and investments in the energy sector.
EU–US energy deal faces global market realities
The European commitment to purchase $250bn of American energy annually raises questions about its technical and economic feasibility in light of limited export capacity.
The European Union and the United States conclude a 15% tariff agreement on trade
A major customs agreement sealed in Scotland sets a 15% tariff on most European exports to the United States, accompanied by significant energy purchase commitments and cross-investments between the two powers.
Qatar threatens to divert its gas exports to Asia over European rules
Qatar has warned that it could stop its liquefied natural gas deliveries to the European Union in response to the new European directive on due diligence and climate transition.
Trade tensions: Brazil’s strategic minerals at the centre of negotiations with the United States
The Brazilian mining sector is drawing US attention as diplomatic discussions and tariff measures threaten to disrupt the balance of strategic minerals trade.
Trump threatens tariffs on Russian oil, but Reuters says enforcement unlikely
Donald Trump has raised the prospect of tariffs on countries buying Russian crude, but according to Reuters, enforcement remains unlikely due to economic risks and unfulfilled past threats.
Afghanistan and Turkmenistan strengthen cooperation on TAPI gas pipeline and trade initiatives
Afghanistan and Turkmenistan reaffirmed their commitment to deepening their bilateral partnership during a meeting between officials from both countries, with a particular focus on major infrastructure projects and energy cooperation.
European Union tightens sanctions on Russian oil to increase diplomatic pressure
The European Union lowers the price cap on Russian crude oil and extends sanctions to vessels and entities involved in circumvention, as coordination with the United States remains pending.
Brasilia Prepares Trade Countermeasures Amid New U.S. Tariffs of 50%
Brazil adopts new rules allowing immediate commercial measures to counter the U.S. decision to impose an exceptional 50% customs tariff on all Brazilian exports, threatening stability in bilateral trade valued at billions of dollars.
European Commission Warns on Chinese Competition, International Agencies Respond
Several international agencies have echoed warnings by Teresa Ribera, Vice-President of the European Commission, about commercial risks related to Chinese competition, emphasizing the EU's refusal to engage in a price war.
EBRD Lends €400 Million to Moldova to Secure Energy Supply
The European Bank for Reconstruction and Development lends €400 million to JSC Energocom to diversify Moldova's gas and electricity supply, historically dependent on Russian imports via Ukraine.
BRICS Launch Their Own Climate Finance Framework and Reject CBAM
BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Union creates a strategic alliance to secure critical chemical supplies
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Russia-Saudi Arabia trade increases by 60% to USD 3.8 billion
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
BRICS Advocate for Energy Market Stability Amid Sanctions
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Iran: Oil Dependence Limits Alliances with Moscow and Beijing
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt strengthens energy cooperation with six Chinese groups at Shanghai summit
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
Hormuz Threat: Producing Countries Face an Imminent Diplomatic Crisis
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Hungary and Slovakia jointly oppose European ban on Russian energy
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING