Media reported that the European Union (EU) is in talks to find a consensus on setting a ceiling on Russian oil prices. The meeting is expected to reach an agreement today.
The source said the EU meeting discussed capping Russian oil prices at $60 a barrel. And review those measures every couple of months in the hope that those proposals will help the meeting reach consensus. After EU members previously had differing views on the matter.
The meeting’s draft statement capped Russian oil prices at $62 a barrel as a compromise between the bloc within the EU.
The measure aims to reduce Russian oil prices by selling oil to support the war in Ukraine. But it must not affect the world’s oil supply to the point of causing a shortage.
The industrialized nations of the Group of Seven (G7) had proposed capping Russian oil prices in the range of $65-70 a barrel, but Poland, Estonia and Lithuania considered it too high. At the moment, Russian Ural oil prices are at a lower level. This will make setting a maximum price in the $65-70 range inefficient.
Poland wants to set prices at $30 a barrel. Because Russia’s production cost is only $20 a barrel. And the issue of capping Russian oil prices is included in the new sanctions.
As regards Cyprus, Greece and Malta, the range of $65-70/barrel is too low. And he wants to compensate the business sector affected by the oil price cap. Including calling for an adaptation grace period to support such measures.
The G7, together with the EU and Australia, are set to impose ceilings on Russian oil prices on December 5, which will apply to Russian oil shipped via tankers. Excluding oil transported through pipelines.
The price cap is set as a punitive measure for Russia’s military invasion of Ukraine on February 24. shipping company Non-life insurance company and reinsurance companies It cannot provide any services related to the transportation of Russian oil cargoes above the ceiling set by the G7 and its partners.
If the EU fails to reach a consensus on capping Russian oil prices, it will force the EU to take tougher measures by announcing a suspension of all imports of crude oil from Russia from 5 December and limiting imports . February 5, 2023, which will have a serious impact on the global oil market.
By InfoQuest News Agency (02 Dec. ’22)
Tags: Russia, oil price, European Union, European Union
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