Six EU countries are calling on the European Commission to lower the price cap on Russian oil, aiming to minimize Russia’s earnings from the oil trade. Denmark, Estonia, Latvia, Lithuania, Finland, and Sweden have voiced their support for the reduction.
In 2022, the EU introduced a price cap on Russian oil of $60 per barrel as part of its sanctions regime against Russia. However, the measure only showed a short-term effect, as the price of Russian Urals oil soon surpassed the set ceiling. Currently, the price of Russian Urals oil is traded at $74 per barrel.
Despite the lack of effectiveness, the Baltic and Nordic states are pushing to lower the price cap. In a letter to EU Foreign Affairs Representative Kaja Kallas and EU Commissioner for Finance Maria Luís Albuquerque, they stated, “We believe it is now time to increase the effectiveness of our sanctions by lowering the price cap.”
Measures targeting Russia’s oil revenue are crucial, as they directly impact Russia’s main source of income, the letter added.