EU’s von der Leyen wants lower cap on Russian oil price at G7 summit

Brussels (dpa) – European Commission President Ursula von der Leyen on Tuesday called for the international price cap on Russian oil exports to be lowered to 45 Dollar per barrel as part of an 18th EU sanctions package on Moscow.

The oil price cap was introduced in 2022 by the Group of 7 (G7) advanced Western democracies, intending to force Russia to sell oil for a maximum of 60 Dollar per barrel.

The measure is aimed at reducing one of Russia’s most important sources of income, in order to limit the country’s ability to continue its war against Ukraine.

“Oil exports still represent one-third of Russia’s government revenues. We need to cut this source of revenues,” von der Leyen told journalists in Brussels.

Since the cap was introduced, prices have gone down, meaning that oil is now traded “very close to the cap level,” she said. Lowering the cap would restore its effectiveness, von der Leyen stated.

The Commission president added that setting a new price limit for Russian oil exports was on the agenda of a G7 summit in Canada later this week.

In May, von der Leyen announced that the European Union was to impose additional sanctions on Russia after Moscow rejected calls for a complete and unconditional 30-day ceasefire in Ukraine. EU countries must unanimously agree to sanctions proposed by the Commission before they can take effect.

In addition to a lower oil price cap, work was under way on further restrictive measures on Russia’s banking and energy sectors as part of the bloc’s new sanctions package, von der Leyen announced. (10 June)