EU countries agree to apply a maximum price to Russian oil

In the post shared on the official social media account of the EU-mandated Czech president, it was claimed that representatives of member states agreed on a maximum price for Russian oil.

It was noted in the publication that “the ambassadors have reached an agreement on the maximum price of oil transported from Russia by sea”, and that the decision will take effect after its publication in the Official Journal of the EU.

The G7 countries and the EU were negotiating to impose a maximum price on Russian oil.

The G7 proposed last week to set a maximum price of $65 to $70 a barrel for oil shipped from Russia.

Within the EU, especially Poland, Lithuania and Estonia were working to set maximum prices at much lower levels, and unanimity prevented the necessary decision from being taken.

Greece, Malta and the Greek Cypriot Administration of Southern Cyprus (GCA), which play an important role in transporting Russian oil and generate significant revenue, wanted the price cap to be set at higher levels.

The EU Commission had proposed applying a maximum price of $60 per barrel of oil transported from Russia by sea to reach consensus in negotiations between member states.

A PRICE LIMITATION MECHANISM CAN BE ESTABLISHED

In addition, a new price cap mechanism will be established in addition to the maximum price of $60 for Russian oil. The mechanism will ensure that the maximum price of Russian oil remains 5 percent below world market prices.

The maximum price applied to Russian oil will be reassessed every 2 months.

The application of the maximum price is expected to take effect on December 5, when the EU’s decision to cut Russia’s crude supplies by sea will become effective.

Russia produces about 10 percent of the world’s oil production.

On the other hand, Russian officials announced that they would not sell oil to countries participating in the application of the maximum price.