Days of hectic negotiations will follow. European Unionas Geria Epirus looks for ways to cut its earnings Russia from oil export and its derivatives and enhance the effect sanctions against Moscow. This time we will talk about the revision of the price ceiling for Russian oil by the EU. and G7 countries and is valid from December. European diplomats will also determine the level of the new ceiling, which they plan to introduce from the beginning of February for petroleum products, including diesel fuel. Limiting the price of Russian oil when it is exported to third countries is intended to allow the flow of Russian oil and oil products, but limit Moscow’s revenues that finance exports. Vladimir Putin’s war against Ukraine. The introduction of a new ceiling for both oil and oil products requires the unanimity of member states, as well as the introduction of new sanctions against Moscow. This is also the reason why negotiations are expected to be hectic.

Estonia, Lithuania and Poland are lobbying for further cuts as they consider the current level too high.

So far, Member States have agreed to review the ceiling every two months, which means that the relevant negotiations should have started earlier, in January. However, the US and some of its allies are opting to wait until March to revise the oil cap and keep the original $60 a barrel for now.

They argue that the mechanism has already proved its effectiveness, as it has led to a decrease in oil prices. At the same time, however, a group of countries led by Estonia, Lithuania and Poland are pushing for a further reduction in the oil limit, as they consider the current level too high compared to current market prices.

In their proposal, sent to member countries earlier this week, they refer to International Energy Agency estimates, according to which the average price of Russian oil on the Russian market in December was $54 per barrel, and $52 in January. Therefore, they are pushing for further lowering of the ceiling to around $40-50 per barrel. The relevant document, leaked to Bloomberg, emphasizes that “in the early stages, the cap seemed to work, but now it is clear that this mechanism needs to be further exploited.”

They even add that Russia is preparing new and more dramatic attacks on Ukraine, so “it is imperative to increase the pressure on the Russian economy and cut it off from oil revenues.” After all, they remind you that the ceiling agreement reached in December provides, among other things, for keeping its price at least 5% below the market average.

Regarding the new ceiling that the EU is planning on Russian oil products, the goal is to secure and stabilize the supply of fuels such as diesel from February 5, when the ban on fuel imports from Russia comes into force.