EU Nations Push for Lower Russian Oil Price Cap to Curtail War Funding

Six EU countries have urged the European Commission to reduce the $60 per barrel price cap on Russian crude established by G7 countries. This move aims to decrease Russia's revenue, thereby limiting its ability to fund the war in Ukraine, without causing a market disruption.

Six European Union countries have jointly called upon the European Commission to decrease the $60 per barrel price cap on Russian oil imposed by G7 nations. The countries argue that this adjustment would effectively curtail Moscow's earnings used to support its military efforts in Ukraine while avoiding any market instability.

Originally established to limit Russia's earnings from its oil trade, the G7's pricing measures aim to hinder Russia's capacity to finance its invasion of Ukraine. Sweden, Denmark, Finland, Latvia, Lithuania, and Estonia collectively stressed the importance of targeting revenue from oil exports as a crucial step in impairing Russia's main income source.

Ukrainian President Volodymyr Zelenskiy's chief of staff, Andriy Yermak, emphasized the critical nature of price caps on oil, highlighting a clear link between energy prices and Russian aggression. The current international oil market conditions present a unique opportunity to implement this strategy without sparking a supply shock, according to these countries.

(With inputs from agencies.)