The European Union will not unilaterally reduce the price cap on Russian oil from US$60 to US$45 per barrel, as this initiative is unlikely to be supported by the Group of Seven (G7).

Source: two diplomats from key EU member states familiar with the discussions at the EU Committee of Permanent Representatives (Coreper) on 16 June, speaking to European Pravda on condition of anonymity

Details:The proposed reduction of the oil price cap from US$60 to US$45 per barrel was included in the draft of the EU’s 18th sanctions package against Russia.

European Commission President Ursula von der Leyen has already stated that any decision to reduce the price cap on Russian oil must be made jointly with G7 partners and would be discussed at the upcoming G7 summit in Canada.

One of the diplomats told European Pravda that it was clear the G7 summit in Canada would not support lowering the oil price cap from US$60 to US$45 per barrel, and in that case, the EU would not include this measure in the 18th sanctions package

This view was confirmed by a second diplomatic source: "During the Coreper meeting on 16 June, the need for coordination with the G7 on the oil price cap was emphasised. Member state representatives also voiced concerns about lowering the cap".

The diplomat added that unilateral reduction of the oil price ceiling by the EU is unlikely.

Background:

• Ukraine has called on the European Union to reduce the maximum price for Russian oil to US$30 per barrel.
• US President Donald Trump previously stated that he aims to bring down global oil prices, which, in his view, would help end Russia’s full-scale invasion of Ukraine.

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