So far, the process has been slowed by Poland, which has demanded that the price tag not go above $30 per barrel.
The European Commission recommended that EU countries approve a ceiling price of $60 per barrel for oil from Russia. This was reported by The Wall Street Journal.
The European Commission applied to the bloc’s 27 member states on Thursday (December 1st) with a request to approve a ceiling price for Russian oil. This restrictive measure should send Russian oil prices well below the international benchmark Brent, which traded at around $88 a barrel on Thursday.
At the end of the day, it was learned that EU countries had previously agreed on a price limit of $60 for oil from Russia. In addition, an additional correction mechanism has been developed that should keep the marginal price of Russian oil at least 5% below the market.
However, Poland’s approval is required for the decision to become final and enter into force. The country needs to set a price tag of no higher than $30 per barrel.
By contrast, the vice-president of the US Treasury believes that the EU can agree on a final price cap for Russian oil by December 5, despite Poland’s objections.
It should be noted that currency indicators immediately reacted to the initiative of the European Commission. Thus, on December 1, Brent oil exceeded $89 per barrel for the first time since November 23. At 17:25 Moscow time, the price of Brent slowed to $88.72 a barrel, according to the stock market.
The marginal price of Russian oil: what did the President of Ukraine say about it?
A little while ago, Ukrainian President Volodymyr Zelensky said at a press conference on the occasion of the founding summit of the Grain from Ukraine initiative that Russian oil prices should be limited to $30-40 per barrel.
According to him, this is necessary so that Russia does not use billions of oil in the war against Ukraine.
“The considered limit today is about $65. I believe it’s artificial: Russia will win these tens of billions. I want these ceiling price sanctions that limit the price of oil to work in reality, not politically,” he said. Zelensky. .
We will remind you that earlier the USA sought the marginal price of Russian oil. Seven years ago, Moscow was ready to mine black gold and sell it at $60, according to US Treasury Secretary Janet Yellen. Russian Ural oil is currently worth about $75 per barrel.
Recall that on October 6, the European Union launched the 8th package of sanctions against Russia. He laid the foundations for limiting the prices of Russian oil. The EU believes that the sanctions “melt down” the Russian Federation’s ability to finance a full-scale war in Ukraine.
Source: Focus
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