EU talks on Russian oil product price caps to continue next week-diplomats
Ambassadors of European Union governments on Friday discussed a European Commission proposal to set price caps on Russian oil products from Feb 5, but reached no decision and decided to continue talks next week, EU diplomats said.
The European Commission proposed on Thursday that the EU set a $100 per barrel price cap on premium Russian oil products like diesel and a $45 per barrel cap on discounted products like fuel oil. The price cap numbers have to be agreed on by EU governments.
“The meeting is over. The proposal from the Commission was discussed and will be reviewed further in the coming week. There were no conclusions today,” one EU diplomat said.
The price cap on Russian oil products is part of the EU’s and Group of Seven (G7) efforts to curb Moscow’s export revenues and therefore its ability to finance its invasion of Ukraine without disrupting world supply.
A price cap of $60 per barrel cap was imposed on Russian crude on Dec. 5. Both price caps work by prohibiting Western insurance and shipping companies from insuring or carrying cargoes of Russian crude and oil products unless they were bought at or below the price cap.
Source: Reuters (Reporting by Jan Strupczewski. Editing by Jane Merriman)