Moscow (Brussels Morning Newspaper) – According to Kremlin spokesperson Dmitry Peskov, a lower price cap on Russian oil proposed by the European Commission won’t help stabilize global energy markets.
On Tuesday, the Commission announced a new set of sanctions against Russia over Ukraine. As part of this, the Commission proposed reducing the Group of Seven nations’ price cap on Russian crude oil to $45 per barrel from $60 per barrel, aiming to reduce the country’s energy revenues.
On Wednesday, Kremlin spokesperson Dmitry Peskov addressed journalists, responding to the European Commission’s latest sanctions proposal.
How does Moscow view the EU’s oil sanctions?
“Such actions do not contribute to the stabilization of international energy markets and the oil market,”
He commented after the European Commission recommended lowering the price ceiling for Russian oil from $60 to $45 per barrel.
Can the EU’s oil cap reduce Kremlin revenues?
“Russia has been living under various restrictions for a long time, which we still consider illegal, and Russia has already gained some very useful experience [on how to] minimize the negative consequences of such decisions,”
The Kremlin spokesman remarked.
Will the G7 support lowering Russian oil prices?
Ursula von der Leyen, President of the European Commission, suggested that Western countries lower the price of Russian oil to $45 per barrel, down from its current price of $60. Back in December 2022, the G7 agreed on a $60 price cap for oil, which was trading at over $100 a barrel. The goal was to cut Russia’s earnings from fossil fuels.
On Tuesday, Von der Leyen told reporters that lowering the cap would “restore its effectiveness.” She also noted that oil exports make up a third of Russian government revenues, saying, “We need to cut this source of revenue.”
She said she was certain the G7 would accept the lower restriction on oil prices, even if it was unclear if Donald Trump would be willing to censure Vladimir Putin. Next week, von der Leyen and other G7 leaders are scheduled to meet in Canada to debate the plan.
The EU Commission also wants to strengthen sanctions against Russia’s “shadow fleet,” which consists of hundreds of antiquated and badly maintained tankers that allow the Kremlin to export oil to nations like India at a price higher than the cap set by the West. These sanctions are part of the EU’s proposed 18th round of sanctions against Russia.
