EU to Set Russian Oil Price Cap at $62 per Barrel

The European Union is likely to set a price cap for Russian oil at $62 per barrel, as reported by a Brussels source to РИА Новости.

The source also emphasized that the European Commission does not plan to postpone the deadline for imposing an embargo on the maritime import of Russian black gold.

Initially, the EU Commission had proposed a price cap of $65-70 per barrel for Russian oil. However, following recent negotiations, the latest proposal has been set at $62 per barrel. Nonetheless, individual member countries, including Poland, are pushing for a lower price, according to the source.

During discussions, the idea of extending the embargo on oil supplies from the Russian Federation was raised but rejected for various reasons.

At the same time, the agency's interlocutor noted that the European Commission is under significant pressure to reach an agreement by December 5.

Earlier, Bloomberg, citing its sources, reported that the EU is considering the possibility of setting the price cap for Russian oil at $62 per barrel. Meanwhile, negotiations had hit a stalemate due to the positions of certain countries.

This cap level was considered high in Poland and the Baltic states. Analyst Igor Yushkov previously stated that EU countries fear setting a price threshold too low for Russian oil, as such a measure could lead to a reduction in exports from Russia.

According to him, if Moscow cuts oil production, it could lead to an even greater deficit, causing the prices of any other oil to rise.

The proposed cap of $65-70 per barrel is seen to be in line with the market price of Russian oil.