The United States is holding off on supporting a European Union push to lower the G7’s price cap on Russian crude oil, despite growing pressure from Brussels and calls from Ukraine for even tougher measures.
EU officials want to reduce the current $60-per-barrel cap to $50, while Ukraine is urging a steeper cut to $30. But Washington is not yet convinced. A European official at the recent G7 finance meeting in Banff, Canada, told Reuters that U.S. Treasury officials believe the market is already doing much of the work. With Brent crude trading near $64 and Russia’s Urals blend selling at a $10 discount, U.S. officials argue there’s little need for further action right now.
Still, American officials remain engaged in the talks, signaling they haven’t ruled out a future move.
The price cap, introduced in 2022, is meant to limit Russia’s oil income by preventing Western firms from insuring or financing shipments sold above the cap. However, enforcement has been challenging, with Russia using a “shadow fleet” of tankers to bypass the rules.
Meanwhile, the EU continues to tighten sanctions. This week, it announced a 17th package targeting Russia’s shadow fleet and energy giant Surgutneftegaz. European Commission Vice President Valdis Dombrovskis confirmed more energy-related measures are under discussion but declined to provide specifics.
For now, the $60 cap remains in place. But with global markets unsettled by trade tensions and economic uncertainty, further changes may be on the horizon.
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