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    Home > Chemicals Industry > Petrochemical News > The EU reached a preliminary agreement on a price limit on Russian seaborne oil

    The EU reached a preliminary agreement on a price limit on Russian seaborne oil

    • Last Update: 2023-01-01
    • Source: Internet
    • Author: User
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    On December 1, local time, according to Reuters, an EU official revealed that in addition to Poland, EU countries have agreed to limit the price of EU imports of Russian seaborne oil to $60 per barrel
    .

    According to the report, the EU reached a preliminary agreement on the price ceiling of imported Russian seaborne oil of $60 per barrel, and also developed an adjustment mechanism to keep the upper limit of Russian seaborne oil prices at 5% below market prices when international oil prices are below $60 per barrel
    .

    However, the above is still subject to Poland's consent
    .
    Poland wanted to set a lower price limit, and once Poland agreed to cap the price of EU imports of Russian seaborne oil at $60 per barrel, the agreement would be submitted in writing to EU governments for approval on December 2
    .

    A price cap on Russian oil was proposed by the US-led Group of Seven to replace the tougher EU embargo on Russia
    .
    According to the G7 proposal, EU member states can continue to buy Russian oil, but need to set a cap
    on the price of Russian crude oil.
    In recent times, the EU has been engaged in intensive negotiations
    on the price ceiling of imported Russian oil.
    According to the previously set deadline, if the EU does not reach an agreement on this by December 5, it will implement the previously agreed embargo measures against Russia, that is, completely ban the import of Russian crude oil from December 5 and completely ban the import of Russian oil products from February 5 next year
    .

    Russian Foreign Minister Sergei Lavrov said on December 1 that Russia is not interested in the West setting a ceiling on the price of Russian oil, because Russia will complete deals directly with its partners and will not supply oil to countries that support the price cap on Russian oil
    .
    Yudayeva, the first deputy governor of the Bank of Russia, said on the same day that the international oil market has repeatedly experienced sharp fluctuations in recent years, and the Russian economy and financial system have shown resilience to energy market shocks, and Russia is ready for any changes
    .

    Russia is one of the world's
    leading oil producers.
    Since the outbreak of the Russian-Ukrainian conflict, the European Union, together with the United States, has imposed severe sanctions on Russia in an attempt to crack down on Russian oil and gas exports, which has also led to tight energy supplies and soaring
    prices in Europe.
    Experts said that the EU's cap on the price of Russian oil may cause Russia to refuse to export oil to Europe, thereby further deepening Europe's dependence on American energy, allowing the United States to weaken Russia and Europe at the same time, and continue to profit
    from the Russian-Ukrainian conflict.

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