WSJ: The European Commission proposed to limit the price of Russian oil to $60

The European Commission proposed to introduce a price cap for Russian oil at $60 per barrel.

The Wall Street Journal writes about it.

The restriction could push Russian oil prices well below the international benchmark, Brent, which was trading at around $88 a barrel on Thursday. If the EU agrees on this level, the G7 (US, Canada, UK, Germany, France, Italy and Japan) must approve it.

High-ranking officials of the blocʼs member states began discussing the proposal on Thursday afternoon. A decision is expected later Thursday, with officials saying Polish officials have asked for time to reconcile the commissionʼs plan with their governmentʼs position.

The price cap is part of a Western effort to cut the Kremlinʼs oil revenues while keeping global supplies stable and avoiding rising prices. This was created as a way to try to allow Russian oil to saturate world markets without Moscow making high profits from its sale.

Russian oil trades at a significant discount to Brent, but because many buyers avoid it altogether. According to Argus Media, which evaluates prices on commodity markets, Russian oil of the Urals brand on Wednesday cost $48 per barrel when exported from the Baltic port of Prymorsk.

• On October 6, the European Union approved the eighth package of sanctions against Russia. It contains a ban on the import of Russian products worth €7 billion and a cap on oil prices. The EU also extended sanctions against individuals and Russian companies involved in illegal "referendums" on the territory of Ukraine.
• At the beginning of September, the USA announced that the G7 countries would set a price limit for Russian oil by December 5. Countries want to see it at the level of $40-60 per barrel, which will seriously affect Russian revenues.