The head of the German Institute describes it as “an experiment with a great chance of success”. Economy (DIW) Marcel Fratcher on capping the price of Russian oil.

“The price of oil has fallen in recent months and has not risen significantly, despite threats” from Moscow that it will not accept the ceiling of 60 euros per barrel, Mr. Fratcher points out in an interview with Reuters and assesses that the limit has proved to be a successful tool for stabilizing world prices .

European Union shipping companies are allowed to transport Russian oil only if it is sold at the maximum price. The same applies to ship insurers and reinsurers. Since the world’s largest shipping companies are based in major developed countries, Fratcher explains, the price cap could effectively prevent Russia from selling its oil at a higher price.

The important question now, he said, is whether a similar cap on natural gas prices should be introduced, which Berlin is under a lot of pressure.

^{Source: APE-MEB}