17, Jan 2023
EU will not set oil price ceiling on its own, media reported

Euractiv: EU will not set oil price ceiling itself, but will use G7 level

The European Union does not plan to independently set the ceiling on Russian oil prices, it will use the level previously agreed by the countries of the “Big Seven”, says the publication Euractiv.

It is expected that the EU on Thursday may enter into force the eighth package of sanctions against Russia, prohibiting European companies to carry Russian oil, the price of which exceeds the established ceiling. We are talking about the transportation of oil by European companies to third countries.

In this case, from December 5, sanctions adopted earlier by the EU, which prohibit the import of Russian crude oil in the Union by sea, will come into force. A temporary exception is made for a number of EU countries, which receive Russian oil by pipeline.

“The EU will use the level of oil price flow from Russia, which will be set by the “Big Seven” … The sanctions will include a ban on transportation of oil from Russia, but will contain an exception for oil at or below the level set by the “Big Seven” countries,” writes the publication, citing European diplomats.

The diplomats explained that the procedure implies that “each time for fixing the price ceiling (in the EU) a mandate of the EU Council (unanimous approval of the decision by all EU countries) will be required … This means that any EU state may use the veto to set new price limits for Russian oil.

Euractiv also points out that before the decision on the application of the price ceiling mechanism for Russian oil for its transportation by sea enters into force, the EU will assess the impact of these measures on Greece, Malta and Cyprus involved in the transportation. For them, according to the publication, certain concessions may be envisaged.

Earlier, the EC stated that within the framework of the new sanctions package, “a legislative framework is being prepared that will allow the introduction of restrictions on prices of Russian oil. The EU has also repeatedly stressed that the actual price ceiling on Russian oil can be introduced only in cooperation with the “Big Seven” and other partners in the international arena, taking into account the interests of countries that buy Russian energy resources.

Earlier, Russian President Vladimir Putin, commenting on the West’s idea to limit prices for Russian energy resources, said that Russia would not supply anything abroad if it contradicted its own interests.

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