The EU will propose to the G7 to lower the price ceiling for Russian oil.

The EU will propose lowering the price ceiling this week. it will fall to $50 per barrel from the current $60, according to European officials. RUSSIA does not supply crude to countries that comply with the restrictions and considers the sanctions illegal.

The European Union will propose to the G7 countries ( UK , Germany , Italy , CANADA , France , Japan and the US ) to lower the price ceiling on Russianoil as part of the new sanctions package. This was announced by European Commissioner for the Economy Valdis Dombrovskis, reportsREUTERS .

He did not specify the level to which the EU would like to lower the price ceiling. European officials familiar with the discussions told Reuters that the EU would propose setting the ceiling at $50 per barrel.

The current price ceiling set by the G7 is $60 per barrel.

As Dombrovskis clarified, the EU will propose lowering the price ceiling this week. On May 14, AFP reported, the EU agreed to the 17th sanctions package against Russia. It could be adopted on May 20.

The proposal to lower the G7 ceiling on Russian oil has been under discussion for several months.BLOOMBERG wrote about such plans back in December.

According to the agency, the G7 discussed various options, including replacing the price cap with a complete ban on refining Russian crude oil and lowering the maximum price to $40 per barrel.

The G7 countries introduced a price cap on oil in December 2022. In February 2023, restrictions on petroleum products also came into effect: $100 per barrel for diesel fuel (sold at a premium compared to crude oil) and $45 per barrel for fuel oil, which is sold at a discount. Companies from G7 countries are prohibited from providing transportation and insurance services for Russian oil and petroleum products if they are sold at a price higher than the cap.

In response to these measures, President Vladimir Putin imposed a ban on Russian oil and petroleum product exports under contracts with price caps. The ban is in effect until June 30. Moscow considers the Western sanctions illegal and demands their lifting.

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