On Wednesday, representatives of EU countries will begin to discuss a possible change of the price ceiling for Russian oil.
The authorities of Poland, Latvia and Lithuania called on the European Union to lower the price of oil from Russia, which was set in December at $60 per barrel, to $51.45 per barrel. Bloomberg reported this on the eve, citing sources.
They believe that the new ceiling level will be 5% below market prices. And taking into account the fact that the Russian Federation’s budget revenues from oil exports in January reached $13 billion, the decrease in the maximum selling price will reduce them by $650 million, the authorities believe of three countries.
Latvia, Lithuania and Poland continue to push for tougher sanctions against Russia. In last year’s price ceiling talks, their demands were ignored because of the US position, which insisted that the limits be set at a level that does not threaten the supply of fuel on world markets.
Today, representatives of EU countries will begin to discuss a possible change of the price ceiling for Russian oil. According to existing agreements, the review is conducted every two months. In January, as a result of negotiations, it was decided to keep the ceiling at $60 per barrel.
It will be recalled that on December 5, 2022, the EU embargo on offshore oil supplies from the Russian Federation began. The G7 countries, the EU and Australia introduced a price ceiling for Russian oil delivered by sea at the level of $60 per barrel for their subordinate vessels and territories. And from February 5, 2023, similar restrictions on the supply of petroleum products from Russia began to operate. The ceiling is set at $100 and $45 per barrel, depending on the category of oil products.
In response, Russia decided to “voluntarily” cut oil production in March. And in the Kremlin they call the ceiling for oil “free”.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.