EU agrees to cut price cap on Russian oil by 15% – Reuters

European Union envoys are in the process of agreeing on the 18th package of sanctions against Russia, which will include a reduction in the price cap on Russian oil. The price for Russian oil will be around US$47 per barrel, which is 15% below the average market price.

Source: Reuters, citing four sources in the EU after a meeting on 13 July

Details: The sources said that all elements of the package have been agreed, although one member state still has a technical reservation regarding the new cap.

The sources, speaking on condition of anonymity, stated they expect a full agreement to be reached on Monday 14 July, ahead of a meeting of the foreign ministers in Brussels, where the package could be formally approved.

They also said that an agreement had been reached on a "dynamic price mechanism for the price cap".

The European Commission proposed on 11 July a floating cap for Russian oil prices, set 15% below the average crude oil market price from the preceding three months.

One source said the initial price would be around US$47 per barrel, calculated as 15% below the average price of Russian crude oil for the last 22 weeks.

In addition, the price will be reviewed based on the average oil price every six months instead of the originally proposed three months.

The sources added that Slovakia, which had been delaying the proposed package of measures, is still awaiting assurances from the European Commission regarding its concerns about the plans to phase out Russian gas supplies but has agreed to the new measures.

Background: On Sunday 13 July, the EU Committee of Permanent Representatives (Coreper) met in Brussels for an extraordinary session during which envoys of EU member states planned to discuss the draft 18th package of EU sanctions against Russia and US tariffs for the EU.

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