The countries of the European Union did not agree on the price cap for oil from Russia. The discussion of this issue is likely to be postponed until the agreement on a broader package of sanctions against the Russian Federation.
Bloomberg writes about this with reference to sources familiar with the progress of the negotiations.
According to the publication, it was not possible to agree on the price cap for oil due to the position of Hungary, Cyprus, and some other EU members. Hungary, Slovakia, and the Czech Republic, which receive oil by pipeline, want guarantees that the introduction of the price cap will not affect pumping. Greece, Cyprus, and Malta may also require guarantees.
EU ministers are due to reach preliminary agreements on a new package of sanctions on October 6 when they meet in Prague. It is expected that the topic of oil prices will be one of the key ones.
- At the beginning of September, the USA announced that the G7 countries would set a price cap 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.
- Against the background of the war, the USA and the EU are phasing out Russian fuel. The EU allocated half a year to abandon oil and up to eight months to abandon petroleum products. Oil deliveries through pipelines have not yet been sanctioned.