FT: Brussels seeks to cut Russian oil cap to $45, but US withholds support

Brussels is pushing for stronger sanctions against Moscow amid Russia’s ongoing full-scale invasion of Ukraine, with initial discussions focusing on lowering the current $60 per barrel price cap on Russian crude oil exports to $45 per barrel, according to sources familiar with the EU’s 18th sanctions package.

However, the proposal has yet to secure unanimous support among the EU’s 27 member states and its G7 allies, Caliber.Az reports, citing FT.

At a gathering of G7 finance ministers last week in Banff, rotating chair Canada suggested including explicit language on tightening the oil price cap in the joint statement. The motion was supported by the EU and its G7 members France, Germany and Italy as well as the UK, but was not included at the request of US Treasury Secretary Scott Bessent, according to three officials briefed on the meeting.

Instead, the G7 communiqué committed member states to “continue to explore all possible options, including options to maximise pressure such as further ramping up sanctions,” if a ceasefire is not reached.

Meanwhile, several EU countries previously hesitant to endorse the oil price cap, notably Hungary and Greece, remain in the process of reviewing the proposal.

“We are ready to apply more pressure on Russia from the European side and we’re hoping other partners will be ready to follow,” European Commission spokesperson Anitta Hipper said.

By Khagan Isayev