“Six EU countries have called on the European Commission to lower the price of Russian oil to $60 a barrel set by the G7 countries, arguing that it would reduce Moscow’s revenue needed to continue the war in Ukraine while avoiding shocks in the market.”, — write: epravda.com.ua
Six European Union countries have called on the European Commission to lower the price of Russian oil to $60 a barrel, set by the G7 countries, arguing that it would reduce the revenue Moscow needs to continue its war in Ukraine while avoiding market shock. Reuters writes about it. The price caps on Russian offshore oil, as well as petroleum products, were imposed by the G7 countries to limit Moscow’s oil trade revenues and thus limit its ability to finance the invasion of Ukraine. “Measures aimed at reducing revenues from oil exports are crucial because they reduce Russia’s single most important source of income,” Sweden, Denmark, Finland, Latvia, Lithuania and Estonia said in a letter to the EU executive.Advertisement: “We believe , that now is the time to further strengthen the impact of our sanctions by lowering the oil price ceiling set by the G7,” the letter said. The G7 price ceiling was set at $60 per barrel for Russian oil and oil products, with a maximum of $100 per barrel for premium oil products and $45 per barrel for oil products discounted to oil. These maximum prices have not changed since December 2022 and February 2023, when they were implemented, while Russian oil market prices have averaged below this level in 2023 and 2024. Advertisement: “Today, the international oil market is better supplied , than in 2022, which reduces the risk that a reduction in the price ceiling will cause a supply shock,” the letter said six countries It is noted that Russia, given its limited oil storage capacity and significant dependence on energy export revenues, is forced to continue selling oil, even if prices drop significantly.