Ukraine has called on the G7 nations to cut the price cap on Russian oil exports from $60 to $30 per barrel, aiming to further reduce Moscow’s revenues as the war enters its third year.
Deputy Foreign Minister Andriy Sybiha made the appeal in Brussels on Tuesday. He argued that the current cap is too generous, especially since global prices have dropped and Russian oil is already selling below the $60 ceiling. “From our point of view, the reasonable price cap is 30 dollars,” Sybiha said.
The request comes as the European Union and the United Kingdom announced new sanctions targeting Russia’s so-called shadow fleet and financial institutions helping to bypass existing restrictions. The EU has reportedly considered lowering the cap to $50, but Ukraine wants a deeper cut.
The timing may be in Ukraine’s favor. Russian oil revenues dropped to $13.2 billion in April—the lowest level in nearly two years. The average price of Russia’s main export grade, Urals crude, was $55.64 per barrel, well under the current cap. Russia’s finance ministry has already lowered its expectations for oil and gas income and tripled its projected budget deficit for 2025.
However, further lowering the cap could face challenges. The cap mechanism only restricts access to Western shipping and insurance services if the oil is sold above the set price. But enforcing it has proven difficult. Reducing the cap to $30 could increase pressure on Russia, but it may also drive more trade through shadow tankers or non-Western channels.
Ukrainian President Volodymyr Zelensky believes that increasing economic pressure is the key to pushing Russia toward a resolution. “The more pressure there is,” Zelensky said Tuesday, “the more motives Moscow will have to move towards real peace.”
Still, experts warn that Russia is likely to find new ways to keep oil flowing—regardless of tougher restrictions.
Related Topics:
- China’s Coal Imports Fall 6% in March Due to Low Demand, High Stocks
- UK Government Funds Coal Shipment to Support British Steel’s Furnaces
- Indonesia’s Coal Expansion Plan Faces Climate and Cost Challenges