As the German Social Democratic Party (SPD) advocates for the demand of the Nordic and Baltic states, calling for a reduction of the G7 oil price cap to $50 per barrel, the energy policy spokesperson, Nina Scheer, emphasizes the need to limit windfall profits. In an interview with Politico, Scheer stated, “With a reduction of the cap, windfall profits could be effectively curbed.” She also stressed that, while the reduction of the cap is necessary, it must not lead to a distortion that would be equivalent to further subsidizing fossil fuels.
The German Foreign Office is currently in consultations with its partners in the so-called oil price coalition over the development of the price cap. The office is pushing for “a further reduction of Russia’s earnings through oil sales.”
In a joint letter, the Nordic and Baltic foreign ministers, reported by Politico, urged the European Commission to support a reduction of the G7 oil price cap. The Baltic and Nordic states argue that it is “now the time” to reduce the price cap, citing the fact that the global market is “better supplied” today than in 2022. They believe that a lower price cap would not trigger a “supply shock.” Moreover, they claim that Russia is so dependent on its oil exports that it would have “no other choice” but to continue exports, even at a significantly lower price.