European Commission wants lower price cap for Russian oil

Since the introduction of the cap in 2023, oil prices have fallen to a level close to 60 dollars per barrel. A reduction to 45 dollars should, according to Von der Leyen, ensure that the measure has an impact again. “Oil exports still represent a third of the Russian government’s revenue. We need to cut further into this source of income,” she stated to reporters.

Von der Leyen wants to present the proposal during the upcoming G7 leaders’ summit in Canada. The price cap is, after all, a joint initiative of this group of seven industrial powers. The German is confident that she can also convince U.S. President Donald Trump of the need for a lower cap. “I assume we will do it together,” she said.

The European Union had threatened with new sanctions last month if Russia continued to refuse an unconditional ceasefire of 30 days. In the new, now 18th sanctions package, the Commission further targets the so-called shadow fleet that Russia uses to circumvent the price cap, the Nord Stream I and II gas pipelines, and the Russian financial sector.

It is now up to the member states to approve the new sanctions unanimously. Then, it is always a matter of watching the stance of Hungary and Slovakia. Both countries have already threatened to use their veto, but so far they have not blocked any sanctions package.