The European Union will not independently reduce the cap on Russian oil prices from the current $60 to $45 per barrel. The reason for this is the likely lack of support from G7 countries. The relevant initiative to lower the price ceiling was included in the draft of the 18th EU sanctions package against the Russian Federation.
This is reported by Finway
Joint Decision by G7 and EU
European Commission President Ursula von der Leyen previously emphasized that the decision to change the price cap must be made in close coordination with G7 partners. This aspect is planned to be discussed at the G7 summit in Canada. If the G7 does not agree to lower the price, the EU will not include this issue in the new sanctions package.
“This decision must be made jointly with G7 partners and will be discussed at the group’s summit in Canada.”
Ban on New Contracts for Russian Gas
At the same time, the European Commission plans to ban all new contracts for the supply of Russian gas, relying on the principles of trade law. This approach will allow circumventing a possible veto that Hungary and Slovakia may impose. According to the proposal, companies will be prohibited from entering into new agreements for the purchase of Russian gas from the moment the relevant decision comes into effect.
It is anticipated that short-term contracts for the import of pipeline and liquefied natural gas from Russia will be terminated by 2026, while long-term contracts will only be valid until the end of 2027. However, certain exceptions are provided for Hungary and Slovakia, which are significantly dependent on supplies from the Russian Federation.