Brussels will propose to reduce the current $60 per barrel price cap onRussian seaborne oil during a meeting of G7 finance ministers this week, European Economic Commissioner Valdis Dombrovskis said Monday.Dombrovskis did not specify the level to which the EU wishes to decrease the cost cap, but authorities briefed on the conversations said Brussels would propose a limitation of $50 per barrel.Asked whether he would suggest decreasing the cost cap at a meeting of G7 financing ministers in Canada later this week, the economic commissioner said: Yes.
This is something which we flagged from the Commissions side in the context of the 18th sanctions plan.
I would expect some interest likewise from other G7 partners in this regard and some conversation, he said.G7 nations consist of the United States, Canada, Britain, France, Germany, Italy and Japan.
The European Commission and the chairman of Eurozone financing ministers also participate in G7 finance ministers meetings.The G7 cost cap was introduced in December 2022, banning trade inRussian crude oil carried by tankers if the rate paid was above $60 per barrel.
It also bannedshipping, insurance and re-insurance companies from handling deliveries ofRussian crude around the world unless it is sold for less than the cost cap.The step was implied to diminishRussias revenues so that it has less cash to spend for its war versus Ukraine, while at the same time avoiding a sharp drop in international oil supply.Russiahas handled to prevent the G7 cost cap through a shadow fleet of tankers that do not get their insurance coverage from Western business, andRussian Urals crudehas tradedabove the price cap for much of the time.But the cost fell listed below $60 in early April, as worldwide issues about financial development in the wake of U.S.
tariffs hit oil prices as well.