Politico: US presses EU on Russian oil price ceiling

MOSCOW, 25 Sep — PRIME. The United States is pressuring the EU countries to have a price ceiling mechanism on oil exports from Russia in place by December 5, but the EU is already late, Politico reports, citing diplomats.

On September 2, G7 finance ministers confirmed the plan to introduce a “price cap” on Russian oil and called on all countries to join the initiative. Earlier, European Commissioner for the Economy Paolo Gentiloni said that the EC’s goal is to introduce a price cap in accordance with the deadlines agreed under the sixth EU sanctions package, that is, December 5, 2022 for crude oil and February 5, 2023 for petroleum products.

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 would be contrary to its own interests.

“A key driver of the renewed call for more sanctions is pressure from the US to prepare a price cap mechanism for oil exports from Russia by December 5…when EU sanctions come into effect that ban the import of Russian crude oil by sea,” the paper said.

According to one of the diplomats, who refers to the Americans, in order to establish a price ceiling, companies need to be notified 90 days in advance, and the EU is “already late.”

It is noted that a number of countries oppose the oil price ceiling, including Cyprus. However, diplomats expect that the price cap will still be part of the new package of sanctions, although it may be agreed only at a meeting of EU leaders in Prague in early October.