The European Union has decided to suspend the review of the price cap on Russian oil, citing the complex situation in the global energy market. In recent weeks, there has been a steady increase in global oil prices, creating additional obstacles to achieving a political compromise among EU member states.
This is reported by Finway
Discussion of Price Limits and Ukraine’s Position
Previously, within the European Union, there was consideration of lowering the current price cap from $60 to $45 per barrel. The Ukrainian side, in turn, advocated for an even stricter approach, insisting on a limit of $30 per barrel. However, due to market instability and differing views on the situation, a compromise could not be reached.
Position of the European Commission and Future Prospects
During the G7 summit, President of the European Commission Ursula von der Leyen emphasized that the current oil price cap mechanism continues to fulfill its function, despite recent market trends.
“In recent days, we have observed rising prices, so the current oil price cap mechanism is fulfilling its function.”
She also noted that there is currently insufficient pressure to prompt an immediate reduction in the cap price per barrel. As a result, the review of the cap, which is part of the sanctions package against Russia, has been postponed indefinitely. EU representatives do not rule out the possibility of revisiting this issue in the future when the market situation stabilizes.