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The EU Could Agree On A Russian Oil Price Cap Today - OilPrice.com

Michael Kern

Michael Kern

Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, 

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The European Union could reach an agreement to back a price cap on Russian oil and more sanctions against Russia as soon as Monday, the Polish representative to the EU said today.

“I am hopeful in a couple of hours we can have a unanimous agreement on the sanctions package,” Andrzej Sados, Poland’s ambassador to the EU, told reporters, as carried by Bloomberg.

“We are very close to it and there is determination to clinch a deal ASAP,” Sados said as the ambassadors to the EU of all 27 member states of the bloc began a meeting to discuss the next package of sanctions against Russia for the latest escalations of its war in Ukraine—sham referendums and the subsequent annexation of four regions in eastern Ukraine.

The package to be discussed is expected to include political backing from the EU on the proposed price cap on Russian oil, the Polish diplomat said. 

The EU is looking to reach an agreement on the new sanctions package before an EU leaders’ summit on October 7 in Prague, sources with knowledge of the talks told Bloomberg.

Last week, European Commission President Ursula von der Leyen presented the Commission’s proposals for the eighth package of sanctions in response to Russia’s escalation of the war in Ukraine.

“Today, in this package, here, we are laying the legal basis for this oil price cap,” von der Leyen said, commenting on the G7-led idea of banning Russian crude oil from imports by sea unless the oil is sold at or below a certain price the buyers expect to set.

The eighth package is planned to include further restrictions on trade with Russia.

A sanctions package would need unanimous approval by all 27 EU member states, but Hungary has said it would block new energy sanctions against Russia.

By Michael Kern for Oilprice.com

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