EU Weighs Delay to Russian Oil Price Cap Rise

The European Union is considering postponing an automatic increase in the price cap on Russian oil until January 2027, after higher crude prices linked to the Iran conflict raised concerns that the new ceiling would boost Moscow’s energy export revenues, the Financial Times reported.

The measure is part of the EU’s 21st sanctions package against Russia and requires unanimous approval by member states. Without agreement on a delay by 15 July, the cap would rise from its current level of $44.10 to $70 per barrel, under a mechanism that updates the ceiling according to the average price of Russian oil over the previous six months.

Brussels is also negotiating with its G7 partners and expects support for the delay from Britain and Canada. The European Commission has separately proposed new sanctions against dozens of Russian banks, oil traders and crypto platforms suspected of helping Moscow circumvent existing restrictions. Reuters also reported that the package would target Russia’s financial sector, oil trade and crypto networks.

The measures could also affect former and current members of the Russian armed forces, whom the EU wants to restrict from entering its territory.

(mja)