The European Commission is preparing to propose a floating price cap on Russian oil as part of its 18th sanctions package, aiming to adjust the cap in line with global oil price changes.
- The new mechanism is being drafted after earlier proposals to lower the G7-imposed $60 per barrel cap to $45 met resistance from some member states and failed to gain U.S. support.
- The floating cap would be reviewed more automatically and could start slightly above $45, though details are still under discussion.
- The move comes amid concerns that the fixed cap has become ineffective due to falling oil prices.
- Shipping-dependent countries like Greece, Cyprus, and Malta remain cautious, worried the measure could harm their maritime industries if businesses shift outside the EU.
—
The background to this is that the original cap, set in 2022, bans tanker-based trade, insurance, and other services for Russian oil sold above the set limit. While some U.S. officials remain unconvinced about lowering the cap, momentum may build in Washington, especially as Trump signals a tougher stance on Russia and some U.S. senators express support for stricter measures.
Even if consensus is reached on the new price cap mechanism, Slovakia continues to oppose the broader sanctions package, citing concerns over the EU’s plan to fully phase out Russian energy imports by 2027. As EU sanctions require unanimous approval, this remains a key obstacle.
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.
