European leaders reached an initial agreement to participate in a scheme to cap the price of Russian oil, part of a Group of Seven-led effort to punish Russia for the war in Ukraine and limit its revenues.
European Union ambassadors reached a political agreement on Tuesday on a draft for the bloc’s eighth round of economic sanctions against Russia, which includes the price cap. A number of European governments had been slow to support a price cap over concerns that it would disrupt economies and markets at a time when energy supplies are already tight.
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“We have moved quickly and decisively,” European Commission President Ursula von der Leyen said Wednesday. “We will never accept Putin’s sham referenda nor any kind of annexation in Ukraine. We are determined to continue making the Kremlin pay.”
Text of the sanctions package has yet to be released, but it would impose a ban on shipping Russian oil with an exemption for oil priced at or below a level set by the G-7, Euractiv reported.
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The bloc was able to win conditional support for the price cap from Malta, Greece, and Cyprus, countries with sizable maritime industries, by making certain concessions, among which is an impact assessment that will be made before price caps are imposed. If the assessment’s finding is negative, it could lead to those countries vetoing the price cap, the outlet reported.
The G-7 is finalizing the terms of the price cap and intends to introduce it in December when the EU’s embargo on Russian oil imports kicks in.
