EU to use G7 oil price ceiling

BRUSSELS, 5 Oct – PRIME. The European Union does not plan to independently set a price ceiling for Russian oil, it will use the level that the G7 countries will preliminarily agree on, Euractiv writes.

As early as Thursday, the EU is expected to bring into force the eighth package of sanctions against Russia, prohibiting European companies from transporting Russian oil, the price of which exceeds the established ceiling. We are talking about the transportation of oil by European companies to third countries.

At the same time, from December 5, the EU sanctions already adopted earlier will come into force, which prohibit the import of Russian crude oil to the Union countries by sea. A temporary exception has been made for a number of EU countries that receive Russian oil through the pipeline.

“The EU will use the level of flow of oil prices from Russia, which will be set by the G7… Sanctions will include a ban on the transport of oil from Russia, but will contain an exception for oil at or below the level set by the G7 countries,” – writes the publication with reference to European diplomats.

At the same time, as the diplomats explained, the procedure assumes that “each time, to fix the price ceiling (in the EU), a mandate from the EU Council (unanimous approval of the decision by all countries of the union) will be required … That is, this means that any EU state can use a veto to setting new marginal prices for Russian oil”.

Euractiv also indicates that before the entry into force of the decision on the application of the price ceiling mechanism for Russian oil for its transportation by sea, 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 provided.

Earlier, the EC stated that, as part of the new sanctions package, “a legislative framework is being prepared that will allow imposing price restrictions on Russian oil.” The EU has also repeatedly emphasized that the actual price ceiling for Russian oil can only be introduced in cooperation with the G7 and other partners in the international arena, taking into account the interests of countries that purchase 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 this would be contrary to its own interests.