European Union agrees cap on Russian oil prices


The European Union (EU) has agreed an eighth package of sanctions against Russia over its aggression against Ukraine. This includes an agreement to cap Russian oil prices.

The package was proposed last week by European Commission President Ursula von der Leyen after Russian President Vladimir Putin threatened to use nuclear weapons. Once the price cap is implemented, European operators will be able to transport Russian oil to other countries only if the price is below a preset level. press release October 6th.

“This will help stabilize the global energy market through continuous supply while further reducing Russia’s revenues. It will also help stabilize energy costs during a time of great concern to us,” said the press release.

The price cap measures are being “closely coordinated” with the G7 partners and will be effective after December 5, 2022 for crude oil and February 5, 2023 for refined petroleum products, after the European Council decides on the issue. It is scheduled to go into effect.

The new sanctions also introduce additional import restrictions worth €7 billion ($6.88 billion) on Russian goods and export restrictions aimed at reducing Russia’s access to military and technological items. The sanctions will deprive Russia and its suppliers of additional supplies needed to wage a war against Ukraine, the release said.

and Tweet On 5 October, von der Leyen welcomed the agreement between Member States on the eighth package of sanctions. “We acted quickly and decisively. We will never accept Putin’s bogus referendum or annexation of Ukraine of any kind. We are determined to keep the Kremlin paying.”

Unanimous approval of all 27 Member States of the EU is required before the sanctions package can be passed. EU leaders will meet in Prague on October 7 to discuss Russia’s war on Ukraine, the energy situation and other issues.

Saudi Reaction, OPEC+ Cuts

The EU price cap proposal is in line with previous agreements by G7 countries, including the US. No decision has yet been made on the price cap, but Washington has indicated that it will be in the coming weeks. Politico.

The Saudi minister has denounced a US-led plan to cap prices on Russian exports, arguing that it is the reason behind the recently announced production cuts by OPEC+.

Energy Minister Abdulaziz bin Salman said the next two months would be an “uncertain period” due to a lack of detail and clarity on how the price cap would be implemented. Said In an interview with Bloomberg.

OPEC+ has announced a cut of 2 million barrels per day of crude oil production from November amid falling oil prices. Oil prices have fallen from over $120 a barrel in early June and are now trading around $80 a barrel.

The White House reacted sharply to OPEC+’s decision.and statement On Oct. 5, National Security Advisor Jake Sullivan and National Economic Council Director Brian Dees said President Joe Biden was “disappointed by the short-sighted decision.”

Naveen Aslapury


Naveen Athrappully is a news reporter covering business and world events for The Epoch Times.