European Union governments are racing to stop a scheduled review of the Russian oil price cap from lifting the limit just as Brussels tries to tighten pressure on Moscow.
The cap is currently set at $44.10 a barrel and, under existing rules, must be adjusted every six months to stay 15% below the average market price. The next review falls on 15 July or the automatic mechanism will be triggered, and officials fear recent rises in Russian oil prices after the closure of the Strait of Hormuz could push the cap to about $58.
The European Commission has proposed delaying the review until January, keeping the cap where it is while countries negotiate the EU’s 21st sanctions package against Russia.
Energy Commissioner Dan Jørgensen defended the push, saying: “We need to have as strict sanctions as we can, including the price cap.” He added: “We are not in a situation where we are stepping down or in any way loosening our pressure on Russia.”
But Malta, Cyprus and Greece have questioned the delay, reflecting the weight of maritime services in their economies. One diplomat said the G7-designed cap was meant not only to cut Russian fossil fuel revenues but also to preserve stability in global energy markets.
Ambassadors failed to settle the package on Wednesday and were due to meet again on Friday afternoon. Diplomats have also discussed an emergency Sunday meeting before the deadline.
Other disputes remain. Portugal and Germany have raised concerns over proposed bans on Russian cod and pollack, while restrictions on LNG tankers, Russian LNG transit and an entry ban for Russian soldiers are still being negotiated.
Bulgaria is also resisting sanctions on Russian Orthodox Patriarch Kirill and oligarch Vagit Alekperov. If no full deal emerges, diplomats may split off the oil cap measure to pass it first.
“We’re close,” a second diplomat said. “I hope for a final discussion on Friday,” Euronews reported.
