The European Union will propose to G7 finance ministers this week to lower the current price ceiling of $60 per barrel on Russian sea-borne oil as part of a new package of sanctions against Moscow.
This was stated by European Commissioner for the Economy Valdis Dombrovskis, Reuters reports.
Dombrovskis did not specify to what level the EU wants to lower the price ceiling, but the agencyʼs sources say that the EU will propose setting it at $50 per barrel.
When asked by reporters whether he would indeed make this proposal at the G7 finance ministers meeting in Canada this week, Dombrovskis replied in the affirmative.
"This is an issue that we have already raised with the European Commission in the context of the 18th sanctions package. I also expect interest from other G7 partners and appropriate discussion," the European Commissioner added.
Restrictions for Russian oil
In early December 2022, the G7 members, as well as Australia and the European Union, capped the price of Russian oil at $60 per barrel. From February 5, 2023, these countries introduced a new price ceiling for Russian oil products: $100 for diesel fuel, $45 for various lubricants. To circumvent oil sanctions, Russia began forming a shadow fleet.
In July 2024, British Prime Minister Keir Starmer said that Russiaʼs shadow fleet consists of almost 600 ships and accounts for about 10% of the worldʼs "wet cargo" fleet. Some of the ships of the shadow fleet function as Russian listening stations, while others transport weapons to Russia. With the help of the shadow fleet, the Russian Federation transports about 1.7 million barrels of oil per day, which brings large profits to the Kremlin. In 2023, Russia earned $188 billion from oil exports. In December, Ukrainian intelligence compiled a dossier on 238 ships and 31 captains belonging to the shadow fleet, with the help of which Russia and Iran circumvent oil sanctions and deliver sanctioned oil.
On January 8, it became known that the Chinese company Shandong Port Group banned tankers subject to US sanctions from entering its ports in the eastern Chinese province of Shandong. The companyʼs ports are the main terminals for importing sanctioned oil.
On January 10, the United States imposed a large-scale package of sanctions against Russian oil companies. 184 Russian tankers, including those from the Russian shadow fleet, were subject to restrictions.
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