EU Countries Could Not Agree on Russian Oil Price Cap

Most EU countries support the introduction of a price cap on Russian oil, but they are still unable to agree on its upper limit. This is reported by Bloomberg and Politico, citing sources. A decision was to be reached on Wednesday, Nov. 23. Poland on Wednesday rejected the proposed $65 a barrel, believing it was “too generous” for Moscow. Warsaw and the Baltic states are demanding a price cap on Russian oil of $30 a barrel. It is reported by Politico, citing unnamed diplomats and officials in the EU. At the same time, Greece, whose shipping industry carries a lot of oil, is not willing to drop below $70 a barrel, notes Bloomberg. Discussions will continue on Thursday. In addition, EU Energy Ministers will meet Nov. 24 to discuss measures to curb natural gas prices, the agency said. A day before, The Wall Street Journal wrote that the EU was discussing the introduction of a price capping on Russian oil supplies at about $60-70 per barrel. All member countries of the European Union will have to agree to the measure. After that, the decision is expected to be approved by the Group of Seven and Australia. The idea of limiting prices for Russian oil transported by tankers was suggested several months ago by US Treasury Secretary Jeannette Yellen. The U.S., the European Union and other market participants are seeking to reduce Russian oil revenues, which are considered the main source of funding for the invasion of Ukraine, while preventing a price spike on the global oil market. Initially, it was discussed to cap the price of Russian oil at between $40 and $60 a barrel. Bloomberg reported at the end of October that the U.S. position on limiting Russian oil prices had softened and a cap above $60 a barrel was being considered. On December 5, the eighth package of EU sanctions against Russia came into effect, including a price cap on Russian oil transported by tankers. In case the EU member-states fail to reach an agreement on a price cap on Russian oil imports, a European ban on financing and insuring of Russian oil shipments is to come into force from December 5. This may, as the White House fears, lead to a sharp rise in world oil prices. Russia has already announced that it will refuse to supply oil and oil products to the countries that will introduce a price cap.