EU Countries' Negotiations on Cap for Russian Oil Prices Stuck

Negotiations among EU countries regarding the cap on Russian oil prices hit a deadlock on Wednesday evening, as governments disagree on how to formulate the plan, Bloomberg reports citing sources.

The European Commission proposed a level of $65 per barrel, which Poland and the Baltic states deemed too generous towards Moscow. However, several countries with significant shipping sectors, including Greece and Malta, are unwilling to lower the cap below $70, which is the upper limit of the range proposed by the EU earlier on Wednesday.

EU ambassadors are scheduled to hold additional negotiations on Wednesday evening. If no agreement is reached, they may meet on Thursday to continue discussions. EU energy ministers are also preparing to meet on Thursday to discuss measures to curb natural gas prices.

A cap at $65 would be significantly higher than the production cost in Russia. However, since Russia is already selling its oil at a discount, the price cap is likely to have minimal impact on trade.

The EU and G7 initially hoped to sign the price cap definition on Wednesday. Approval of the cap requires unanimous support from all EU member states.