EU caps Russian seaborne oil price at $60 a barrel: Report

Photo by Dušan Cvetanović/

Poland, Lithuania and Estonia say the measures counter the main objective of cutting Russian revenue and its ability to finance the war  

After an initial proposal by the Group of Seven nations (G7) to cap the price of seaborne Russian oil at $65-70 per barrel, the European Union (EU) has agreed to set the cap at $60.

According to a report by Reuters on Thursday, November 1, an EU diplomat said, “The price cap is set at $60 with a provision to keep it 5 percent below market price for Russian crude, based on IEA figures”. The diplomat added, “The reviews of the price cap level would be held every two months”.

Meanwhile as the Russian Urals crude oil has already been trading low, Poland, Lithuania and Estonia have rejected the rate of cap. The report states, the three countries have raised objection as they say the move counters the main objective of cutting Russian revenue and its ability to finance the war.

The price cap on Russian seaborne crude oil is scheduled to kick in on December 5. The G7 cap will replace the present ban on buying Russian crude oil.

The report also said, the price cap prohibits the shipping or insurance of Russian Crude oil around the world by companies, unless they sell the oil for less than the price set by G7 and its allied. This move also would stop Russians from selling their oil at higher prices, as all the major shipping and insurance companies are based in G7 countries.

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