Reuters insiders have learned that the European Commission intends to propose a "floating" upper limit on the price of Russian oil soon. This could happen as part of a new draft of the 18th package of sanctions. In this way, the EU hopes to overcome resistance from individual member states.
Points of attention
- The starting price of the new mechanism is expected to be slightly higher than $45, with the final limit yet to be determined.
- The EU's efforts to revise the mechanism for limiting the price of Russian oil may face uncertainties in gaining unanimous approval from EU ambassadors.
Journalists learned about the EU's plans
According to media reports, official Brussels is actively developing a mechanism that will allow it to adjust restrictions on Russian oil in accordance with changes in global oil prices.
One insider said the mechanism is still in the process of being created and involves a more automated process for reviewing the price cap to adjust it in line with global oil prices.
It is currently unknown what the limit will be, but the starting price will be slightly higher than $45.
What is important to understand is that the European Commission recently proposed lowering the "price ceiling" for Russian oil from $60 to $45 per barrel as part of the EU's 18th package of sanctions against Russia.
Despite this, the plan was forced to be abandoned because official Brussels and London were unable to secure the support of American leader Donald Trump.
It is currently difficult to say whether EU ambassadors will be able to agree on a revision of the mechanism for limiting the price of Russian oil.
