Bloomberg: EU talks on oil price ceiling postponed due to differences between countries

European Union (EU) talks on a cap on Russian oil prices have been postponed as diplomats need more time to resolve differences. This is reported Bloomberg citing sources familiar with the case.

The fact that negotiations between the EU countries on the maximum level of prices for Russian oil have reached an impasse, the sources of the agency reported yesterday, November 23rd. At the same time, the agency noted that another meeting could be held today, November 24. Later in the EU confirmedthat they could not reach an agreement.

Edition Politico referring to unnamed diplomats, it reported that the differences between the countries are related, in particular, to the position of Poland and the Baltic countries. According to the publication, they demand a ceiling of $30 per barrel. At the same time, most EU countries offer a cap in the range of $65-70 per barrel. Estonia maybe use the right of veto when agreeing on the restriction, since the price cap of $65-70 per barrel seems to the authorities “too high”.

Establishing a ceiling on oil prices is planned as part of the eighth package of EU sanctions. The introduction of restrictions on Russian oil is expected on December 5, on oil products – on February 5. November 21, Deputy Prime Minister of the Russian Federation Alexander Novak confirmedthat Russia will not supply oil to countries that join the price ceiling mechanism. The mechanism itself involves a ban on insurance of tankers that transport fuel at a price higher than the established one.

Read more about the EU negotiations on the introduction of the ceiling – in the publication “Kommersant” “The European Union has not reached the ceiling”.

Lusine Balasyan