Latest news with #pricecap
NHK
4 days ago
- Business
- NHK
EU to lower price cap on Russian oil under new sanctions
The European Union has decided to lower the price cap on Russian crude oil shipped by sea to strengthen sanctions against Moscow, as the country continues its invasion of Ukraine. The EU announced on Friday that the price cap will be lowered from 60 to 47.6 dollars per barrel. It says the cap is set always 15 percent below the average market price. The bloc also said the price will be adjusted in line with market fluctuations in principle, and that the cap will be reviewed every six months. The EU introduced the 60-dollar cap on Russian oil in December 2022, based on its agreement with the Group of Seven nations and Australia. The EU aims to pressure Moscow to accept a ceasefire by dealing further blows to the energy industry that supports the country's economy, and cutting down a source of revenue. Britain will take similar measures. The EU is expecting other G7 members to follow suit, but it is unclear whether the United States will join hands with them. The European bloc also announced that it will impose sanctions on an additional 105 vessels in Russia's so-called shadow fleet. The vessels allegedly transport Russian oil while circumventing restrictions. EU foreign policy chief Kaja Kallas said in a statement that the latest sanctions aim to weaken Moscow's ability to continue the fighting. She added, "The EU will keep raising the pressure until Russia ends its war."
Bloomberg
4 days ago
- Business
- Bloomberg
UK Joins EU Push to Hit Russia by Cutting Crude-Oil Price Cap
The UK joined the European Union's efforts to diminish Russia's revenues further by lowering the price cap on its crude oil, extending a broader push to pressure the Kremlin for continuing the war in Ukraine. The cap on Russian oil, currently set at $60 per barrel, will be lowered to $47.60 on September 2, the UK government announced Friday. The price caps of $100 on high-value refined oil products, such as diesel and petrol, and $45 on low-value refined oil products, such as fuel oil, remain unaffected.
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
EU envoys near agreement on lower Russian oil price cap
The European Commission proposed the package in early June, aimed at further cutting Moscow's energy revenues. (EPA Images pic) BRUSSELS : EU envoys are on the verge of agreeing to an 18th package of sanctions against Russia for its full-scale invasion of Ukraine that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting. The sources said all the elements of the package had been agreed, although one member state still has a technical reservation on the new cap. The sources – speaking on condition of anonymity to discuss confidential talks – said they expect to reach a full agreement on Monday, ahead of a foreign ministers' meeting in Brussels the following day that could formally approve the package. The sources said they had also agreed to a dynamic price mechanism for the price cap. On Friday, the European Commission proposed a floating price cap on Russian oil of 15% below the average market price of crude in the previous three months. One of the sources said the initial price would be around US$47 a barrel based on the average price of Russian crude for the last 22 weeks minus 15%. Further, the price would be revised based on the average oil price every six months instead of the proposed three months. Slovakia – which has held up the proposed package – is still seeking reassurances from the European Commission on its concerns about plans to phase out Russian gas supply, but it has agreed to the new measures, the sources said. Sanctions require unanimity among the EU's member countries to be adopted. The Group of Seven (G7) price cap, aimed at curbing Russia's ability to finance the war in Ukraine, was originally agreed in December 2022. The EU and Britain have been pushing the G7 to lower the cap for the last two months after a fall in oil futures made the current US$60 a barrel level largely irrelevant. The cap bans trade in Russian crude oil transported by tankers if the price paid was above US$60 per barrel and prohibits shipping, insurance and reinsurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap. The Commission proposed the package in early June, aimed at further cutting Moscow's energy revenues, including a ban on transactions with Russia's Nord Stream gas pipelines and financial networks that help it circumvent sanctions. Another one of the sources said the new package will list a Russian-owned refinery in India, two Chinese banks, and a flag registry. Russia has used flags of convenience for its shadow fleet of ships and oil tankers.
News24
4 days ago
- Business
- News24
EU hits Russia with sweeping new sanctions over Ukraine war
The EU on Friday adopted a sweeping new package of sanctions on Russia over the Ukraine war, looking to pile more pressure on the Kremlin by lowering a price cap for Moscow's oil exports. The 18th round of economic measures from Europe against Russia since its 2022 invasion comes as allies hope US President Donald Trump follows through on his threat to punish Moscow for stalling peace efforts. The new measures were approved after Slovakia dropped a weeks-long block following talks with Brussels over separate plans to phase out Russian gas imports. The EU on Friday adopted a sweeping new package of sanctions on Russia over the Ukraine war, looking to pile more pressure on the Kremlin by lowering a price cap for Moscow's oil exports. The 18th round of economic measures from Europe against Russia since its 2022 invasion comes as allies hope US President Donald Trump follows through on his threat to punish Moscow for stalling peace efforts. "The EU just approved one of its strongest sanctions packages against Russia to date," EU foreign policy chief Kaja Kallas said. "The message is clear: Europe will not back down in its support for Ukraine. The EU will keep raising the pressure until Russia ends its war." Ukrainian President Volodymyr Zelensky hailed the sanctions' adoption as "essential and timely". The new measures were approved after Slovakia dropped a weeks-long block following talks with Brussels over separate plans to phase out Russian gas imports. Kremlin-friendly Slovakian leader Robert Fico - whose country remains dependent on Russian energy - dropped his opposition after getting what he called "guarantees" from Brussels over future gas prices. France's foreign minister Jean-Noel Barrot called the latest moves "unprecedented" and said that "together with the United States we will force (Russian President) Vladimir Putin into a ceasefire". As part of the new sanctions designed to sap Russia's war chest, diplomats said the EU has agreed to lower its price cap on Russian oil exported to third countries around the world, to 15 percent below market value. That comes despite EU allies failing to convince US President Donald Trump to go along with the plan. READ | The cap is a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries across the globe such as China and India. Set at $60 by the G7 in 2022, it is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount. The EU has largely already cut off its imports of Russian oil. Under the new EU scheme -- which is expected to get the backing of G7 allies like Britain and Canada -- the new level will start off at $47.6 and can be adjusted as oil prices change in the future. EU officials admit that the scheme will not be as effective without US involvement. Tankers, refinery, banks In addition, officials said the EU is blacklisting over 100 more vessels in the "shadow fleet" of ageing tankers used by Russia to circumvent oil export curbs. There are also measures to stop the defunct Baltic Sea gas pipelines Nord Stream 1 and 2 from being brought back online. Among other targets, sanctions will be placed on a Russian-owned oil refinery in India and two Chinese banks as the EU seeks to curb Moscow's ties with international partners. There is also an expanded transaction ban on dealings with Russian banks and more restrictions on the export of "dual-use" goods that could be used on the battlefield in Ukraine. READ | Ramaphosa and Canada's Mark Carney agree on alignment of G20, G7 agendas during call The latest round of EU measures comes after Trump on Monday threatened to hit buyers of Russian energy with massive "secondary tariffs" if Russia doesn't halt the fighting in 50 days. The move from Trump represented a dramatic pivot from his previous effort of rapprochement with the Kremlin, as he said his patience was running out with Putin. The multiple rounds of international sanctions imposed on Moscow in the three-and-a-half years since its invasion have failed so far to cripple the Russian economy or slow its war effort. But Western officials argue that despite Russia's economy largely weathering the punishment to this point, key economic indicators such as interest rates and inflation are getting worse.
Russia Today
14-07-2025
- Business
- Russia Today
Unexpected EU state holding up bloc's latest Russia sanctions
Malta has objected to the European Commission's proposal to further lower the price cap on Russian oil exports, Politico reported, citing EU diplomatic sources. The issue reportedly came up during a meeting of the Committee of Permanent Representatives on Sunday, with Reuters noting that one member state had entered a 'technical reservation.' The measure which the Commission suggested is part of the bloc's 18th sanctions package, which targets Moscow over its role in the Ukraine conflict. It includes a floating price cap on Russian crude oil set at 15% below the average global price over the previous three months. It would replace the current $60 per barrel limit introduced in 2022. The measure bars EU member states and vessels flying their flags from carrying oil originating in Russia if sold for more than the threshold price. Malta's specific concerns have not been detailed, but a large number of ships fly the flag of the island nation. Its maritime insurance sector has previously expressed unease over measures that could drive shipowners to reflag outside the EU, causing economic harm to the bloc's shipping registries and related industries. Apart from the proposed lower price cap, the new sanctions package includes a ban on the future use of the Nord Stream pipeline, restricts imports of refined products made from Russian crude, and sanctions 77 vessels which the West has claimed are part of a so-called Russian 'shadow fleet.' Although the European Union has not imposed an outright ban on Russian gas, the majority of member states have voluntarily reduced their imports since the Ukraine conflict escalated in 2022. Nonetheless, several landlocked nations, including Slovakia, Hungary, Austria, and the Czech Republic, continue to depend on limited supplies under exemption arrangements. Slovakia, which initially blocked the 18th package, may endorse it, Politico noted, if Brussels eases the impact of phasing out Russian energy under the RePowerEU plan, which targets ending such imports by 2027. Moscow has condemned Western sanctions, calling them illegal and counterproductive. Russian President Vladimir Putin has set the lifting of sanctions as a condition for resolving the Ukraine conflict.
