INSUBCONTINENT EXCLUSIVE:
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.
