The EU will not reduce the “price ceiling” for Rosneft

The European Commission said that Rosneft’s price cap of $60 per barrel “proved to be effective” against the Kremlin’s war machine. There are no plans to lower the price ceiling in the near future.

The European Commission informed diplomats from 27 EU member states that currently most G7 countries do not intend to lower the “price ceiling” for Rosneft. The International Energy Agency (IEA) said that the mechanism allegedly achieved its goals of reducing moscow’s income, Bloomberg writes.

As a result of the sanctions, Rosneft’s weighted average export price was $52.48 per barrel, excluding shipping and insurance costs. According to the IEA, Urals crude oil traded at 45.27 US dollars. Instead, the prices of ESPO, Sakhalin and Sokol varieties exceeded the established limit.

It will be recalled that earlier Poland, Lithuania and Estonia insisted on lowering the “price ceiling” to $51.45 per barrel. G7 countries agreed to review the price limit in March. EU legislation stipulates that the cap will keep the maximum Rosneft price 5% below average market rates.

Under the restriction, a carrier of ussian crude can only get insurance from a Western company if buyers pay less than $60 a barrel. At the same time, at least half of russian tankers are still insured by Western companies.