The Finnish Foreign Ministry proposes lowering the price ceiling for Russian oil to $40/barrel

The Finnish Foreign Minister believes that the “price ceiling” for Russian oil could be lowered to $40 per barrel.

Finland, along with other Nordic and Baltic countries, had already proposed lowering the price in January, Yle reported.

Foreign Minister Elina Valtonen said that sanctions against Russia, which continues to wage war in Ukraine, should be strengthened.

The foreign minister believes that one effective way would be to lower the price ceiling for Russian oil from the current $60/barrel. Valtonen notes that the market price for oil has fallen in recent weeks, so the price ceiling should also be lowered.

“I would say that it could even be about $40. But any reduction in this case would be useful,” the minister noted.

The price ceiling in practice means that Russian oil can only be transported by Western tankers for sale if it is sold at a price below $60/barrel. The measure is designed to limit Russia’s oil revenues, making it more difficult to finance military operations.

Finland, along with other Nordic and Baltic countries, had already proposed lowering the price ceiling in January. The price ceiling is set by the G7 countries.

According to Valtonen, many G7 members are ready to lower the price ceiling, but it all depends on the United States.

“We are currently waiting to see what the US position will be: whether they want to tighten restrictions against Russia or not,” the foreign minister said.

EU foreign ministers will approve the 17th package of sanctions against Russia on Tuesday. This time, the Russian “shadow fleet” will be hit.

Recall that the German Foreign Ministry announced that new sanctions are planned against the Russian “shadow fleet”.