The block will create a correction mechanism so that this maximum price is always 5% below the market price
The Twenty-Seven reached an agreement this afternoon to set a $60 cap on Russian oil imported by sea. This measure is in line with that of the G7 to set a price cap between USD 65 and USD 70 (between EUR 62 and EUR 67) for crude oil from Moscow, in the context of the Russian invasion of Ukraine, and is expected to take effect this weekend.
In addition to a cap at European level, the block will create a correction mechanism so that this maximum price is always 5% below the market price. The tool will be reviewed every two months and diplomatic sources are confident that “it could choke the Russian economy” due to the expected rise in oil prices in the coming months.
Three days after the European embargo on the purchase of oil from Moscow came into effect, negotiations between member states reached their peak. However, part of the crude oil coming to the continent by pipeline will be excluded from this veto, due to the heavy dependence on Hungary, Slovakia and the Czech Republic and the difficulties of these countries in replacing these supplies.
Poland and the Baltic countries maintained the strongest position within the community bloc during the talks, demanding a maximum price of 30 dollars (28.5 euros), well below the proposal initially put forward by the European Commission. Others, such as Greece, Cyprus and Malta, eventually succumbed to the cap also set by the G7 in exchange for a compensation mechanism to supply oil to their maritime transport sector.
The measure must now be adopted by written procedure of the European Council, without the need for a meeting of ambassadors. The limit will come into effect with its publication in the Official Gazette of the EU, which could happen this weekend.
The EU is thus making progress with its policy of economic sanctions against Russia in retaliation for its military aggression against Ukraine. All in all, the ninth round of sanctions remains stuck in the technical phase of negotiations and the bloc seems to have stopped its intention to apply new energy sanctions to Moscow. Official European sources point out that this delay is due to the EU’s efforts to minimize the negative effects of the punishments on the Kremlin. The measures must be “very targeted and sophisticated”, they emphasize.
Source: La Verdad
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