Estonia threatens to block 18th EU sanctions package against Russia over oil price cap

Estonia has threatened to block the European Union’s 18th package of sanctions against Russia if it excludes the imposition of a lower price ceiling for Russian oil 

Speaking to Estonian public broadcaster ERR, Foreign Minister Margus Tsahkna said Tallinn holds a firm position that lowering the oil price ceiling must be part of the upcoming sanctions framework, Caliber.Az informs.

"We are in a very clear position that lowering the oil price ceiling must be included in this package. We have a very strong position on this," Tsahkna stated.

The minister emphasised that a lower price ceiling on Russian energy exports should serve as the most impactful element of the new sanctions round, reinforcing pressure on Moscow's ability to finance its war against Ukraine.

Tsahkna also voiced criticism of attempts by some EU member states to soften the European Commission's original proposal by removing the new price cap measures. He made clear that Estonia opposes any such dilution.

“Our country’s stance is to adopt the package as proposed by the European Commission in its original form. We are against efforts to weaken it by scrapping the price cap,” he said.

The Foreign Minister explained that lowering the price ceiling from the current $60 per barrel to $45 was also included in the proposal initially submitted by the European Commission.

The European Union has been gradually tightening economic restrictions on Russia since the full-scale invasion of Ukraine in February 2022. However, internal divisions have increasingly complicated the approval process for successive sanctions packages, which require unanimity among all 27 member states.

For the record, the current EU-imposed price cap on Russian crude oil, set at $60 per barrel, was introduced in December 2022 as part of a broader G7 initiative to curb Kremlin revenues while maintaining global energy stability. Some EU states, including Estonia, Poland, and Lithuania, argue the cap has lost effectiveness and should be significantly lowered.

By Khagan Isayev