Aerial view of a ship at sea.
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The European Union has reached an settlement on a brand new sanctions bundle in opposition to Russia, which features a cheaper price cap for Moscow’s crude oil barrels.
Inside a 12 months of Russia’s 2022 invasion of Ukraine, the G7 and EU restricted the worth at which non-G7 nations may proceed buying Moscow’s crude and oil merchandise whereas utilizing delivery and logistical companies from G7 corporations.
The measures aimed to restrict Russia’s oil revenues — the spine of its economic system and conflict coffers — whereas retaining the nation’s provides out there to keep away from a significant scarcity.
The value cap agreed in December 2022 banned entry to G7 transport, insurance coverage and reinsurance companies if non-G7 consumers paid greater than $60 per barrel for crude. Previously a staple of European refiners’ consumption, Russian crude now primarily heads to consumers in China and India.
EU policymakers on Friday signaled the Russian oil worth threshold can be lowered as a part of a newly agreed sanctions bundle.
“I welcome the settlement on our 18th sanctions bundle in opposition to Russia. We’re placing on the coronary heart of Russia’s conflict machine. Focusing on its banking, power and military-industrial sectors and together with a brand new dynamic oil worth cap,” EU Fee President Ursula von der Leyen said on social media.
The EU’s prime diplomat Kaja Kallas concurred {that a} “decrease oil worth cap” was a part of the freshly agreed measures, additionally noting that the bloc had, for the primary time, sanctioned Russian oil producer Rosneft’s largest refinery in India.
Neither official explicitly named the extent of the brand new worth cap. CNBC has reached out to Canada, holder of the G7’s yearly rotating presidency in 2025, for touch upon whether or not the group endorses the lowered threshold.
— CNBC’s Silvia Amaro contributed to this report.
This growing story is being up to date.