European Commission to propose floating price ceiling for Russian oil
11.07.2025 - 12:41
The European Commission is expected to propose a “floating” price cap on Russian oil as part of a new draft sanctions package.
Reuters reported, citing four EU diplomats.
In June, the European Commission proposed lowering the oil price cap for the Group of Seven (G7) countries from $60 to $45/barrel in its 18th package of sanctions against Russia. The G7 price cap, aimed at limiting Russia’s ability to finance the war in Ukraine, was originally agreed in December 2022.
The plan to lower the price cap was prompted by a plunge in global oil prices, which has made the current cap largely irrelevant. Britain and the EU failed to secure support from US President Donald Trump to lower the cap at a G7 leaders’ meeting in Canada in June.
During the 12-day military action between Israel and Iran in June, oil prices briefly jumped to almost $80/barrel, before falling back to $60/barrel.
Four EU sources said the European Commission was developing a mechanism that would allow it to adjust the price cap for Russian oil based on changes in global energy prices.
USM previously reported that Estonia could block a new EU sanctions package if it did not include restrictions on the transportation of Russian oil.
