EU agrees to impose price cap on Russian oil – Politico – RT Business News

The bloc has promised ‘concessions’ to defeat opposition from Malta, Greece and Cyprus

The EU has reached a provisional agreement to impose a price cap on the sale of Russian oil to third countries, Politico Europe reported on Tuesday citing diplomatic sources. Cyprus, Greece and Malta were worried about the potential impact on their shipping industry, but were reportedly promised concessions.

The price cap is part of the eighth round of anti-Russian sanctions, which Brussels is expected to roll out this week, citing the ongoing conflict in Ukraine.

EU ambassadors reached an agreement on Tuesday and expect to approve the final text on Wednesday, Politico reported citing seven diplomats – all of whom wished to remain anonymous. The details of the sanctions have yet to be confirmed in writing, and there has been a “limit” lucky the deal could fall apart again, a source reportedly said.

The three Mediterranean members were reportedly concerned about the impact of the measure on their commercial shipping, but Brussels offered “concessions” in the form of a “Surveillance system” which would propose measures to mitigate the impact of the embargo, in the event of “significant loss of business” due to practices such as the reflagging of commercial vessels.

The EU has already banned the import of coal from Russia, with an oil embargo expected to come into force in December. The price cap aims to block Moscow’s oil exports to third countries using EU-registered vessels, as the bloc has already sanctioned all Russian vessels.

Meanwhile, Hungary said it had obtained assurances that the price cap would not apply to oil delivered through pipelines.

Anti-Russian measures adopted by the United States and its allies led to a spike in oil prices, leaving Russia with more export revenue than before the embargo. The price cap proposed by the G7 aims to neutralize this. According to the proposal, EU ships will refuse to transport Russian oil if its price is above the ceiling, the value of which has not yet been determined.

Sanctions have also led the EU to face severe energy shortages. However, the leaders of the bloc have pledged to support Ukraine indefinitely and no matter what.

Moscow has made it clear that it will not abide by the price cap system, with Deputy Prime Minister Alexander Novak warning that Russia will simply refuse to sell fuel to countries seeking to enforce or abide by it.

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