January 13, 2025
Northern Europe and the Baltic States call for lowering the price ceiling for Russian oil thumbnail
Economy

Northern Europe and the Baltic States call for lowering the price ceiling for Russian oil

Northern Europe and the Baltic States call for lowering the price ceiling for Russian oilThe foreign ministers of the Nordic and Baltic countries have written a letter to the European Commission regarding the reduction
of Russian oil prices. A $10 per barrel reduction could cut Russia’s military spending by 15%.
”, — write: unn.ua

Swedish Foreign Minister Maria Malmer Stenergaard and her colleagues from the Nordic and Baltic countries have written a letter calling on the European Commission to propose a reduction in the oil price ceiling within the framework of G7 coordination, UNN reports citing the Swedish Foreign Ministry.

Together with my Scandinavian and Baltic colleagues in the EU, I wrote a letter to urge the European Commission to propose a lower oil price ceiling within the coordination of the G7

According to her, there is constant work to cut off the flow of funds into the Russian treasury. One third of the country’s income comes from energy exports. According to Stenergaard, Sweden is now in favor of lowering the oil price ceiling, which will hit Russia’s military finances hard.

It is estimated that a ten dollar per barrel reduction in the oil price ceiling from the current $60 per barrel would reduce Russian treasury revenues by more than 200 billion kronor (about 17.4 billion euros) per year. This is estimated to be about 15 percent of Russia’s planned military spending this year, according to the Swedish Foreign Ministry.

“Secondly, we are now stepping up systematic work to stop the activities of the shadow fleet, which Russia uses to circumvent the oil price ceiling,” Stenergaard said.

Russia has increased the capacity of its shadow oil fleet by about 70% in a year despite Western sanctions – FT14.10.24, 11:59 • 16350 views

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