Negotiations on the Price Cap for Russian Oil Delayed

Negotiations within the European Union (EU) regarding a price cap on Russian oil have been postponed as diplomats require more time to resolve disagreements. Bloomberg reports this, citing sources familiar with the matter.

On November 23, it was indicated by agency sources that negotiations among EU countries regarding the maximum price level for Russian oil had reached an impasse. Meanwhile, the agency noted that another meeting could take place today, November 24.

Subsequently, the EU confirmed that they have not been able to reach an agreement. According to Politico, referencing anonymous diplomats, the disagreements among countries are particularly related to the positions of Poland and the Baltic States.

According to the publication, they demand a maximum price of $30 per barrel, while most EU countries propose a cap of $65-70 per barrel. Estonia may exercise its veto right since the proposed price threshold of $65-70 per barrel seems “too high” to the authorities.

The definition of the price cap for oil is part of the EU's eighth package of sanctions. The introduction of restrictions on Russian oil is expected on December 5, while restrictions on oil products are set for February 5.

On November 21, Russian Deputy Prime Minister Alexander Novak confirmed that Russia would not supply oil to countries that join the price cap mechanism. The mechanism itself implies a ban on insuring tankers transporting fuel at prices above the established threshold.