The European Union plans to urge Group of Seven (G7) finance ministers to cut the current $60-per-barrel price cap on Russian seaborne oil exports, according to European Economic Commissioner Valdis Dombrovskis.
Speaking on May 19, Dombrovskis told Reuters the proposal will be officially presented during this week’s G7 finance meeting in Canada. The move is part of the EU’s broader effort to tighten sanctions on Russia and reduce its income from fossil fuel exports, which help fund its war in Ukraine.
“This is something we flagged in the context of the 18th sanctions package,” Dombrovskis said. “I expect other G7 partners will also show interest in this and discuss it.”
The $60 cap, introduced in December 2022, restricts Western companies from shipping, insuring, or providing services for Russian crude sold above that price. EU officials say a new proposal will call for lowering the cap to $50 per barrel.
Western nations are increasingly concerned that Russia has found ways to bypass the current limit by using a “shadow fleet” of tankers. These ships operate without regular oversight, allowing Russia to sell oil at higher prices, especially to buyers in Asia.
On May 17, German Foreign Minister Johann Wadephul said the EU would support tougher sanctions against this shadow fleet.
Russia’s government is under financial pressure as war costs rise. The country’s Finance Ministry relies heavily on energy revenue to support its budget and military operations.
The EU hopes that stricter price caps and broader sanctions will reduce Moscow’s ability to sustain its aggression in Ukraine.
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