US EditionEU Weighs Replacing Russian Oil Price Cap With Services Ban, Bloomberg Reports
The EU plans to replace the Russian oil price cap with a ban on European maritime services to close loopholes, as Russia's oil revenues fall to a five-year low, officials said.
- As of Jan. 29, the European Union is preparing to replace its Russian oil price cap with a ban on maritime services, preventing European firms from handling Russian cargoes.
- Because the price cap proved hard to police, the EU price cap will drop to $44.10 per barrel on Feb. 1, but officials say this may not cut Russian crude income if barrels take shadow routes.
- European officials say a services ban would simplify enforcement by reducing reliance on documentation-based checks and tighten pressure as Russia's oil and gas revenues fall to a five-year low.
- Unanimity is required for sanctions, so several EU member states remain uneasy, and the proposal was recalled on Jan. 29 during preparations for the 20th sanctions package aimed for Feb. 24.
- With Europe's crude imports down nearly 9% last year, refiners in Turkey and India have cut back sharply while China's teapot refineries absorbed displaced barrels, and analysts warn a services ban would push more Russian oil into discounted, high-friction channels.
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16 Articles
EU Weighs Scrapping Russia Oil Price Cap for Harder Sanctions
The European Union is quietly preparing to take a much bigger swing at Russia’s oil trade. And this time, Brussels is aiming less at price optics and more at enforcement reality. The EU is reportedly weighing whether to scrap its Russian oil price cap altogether and replace it with a blanket ban on maritime services, Bloomberg sources have suggested. This would mean that European firms could no longer provide insurance, shipping, or transport se…
To block Putin's "shadow fleet."
Sweden and Finland are making pressure on the European Union for a new package of hard sanctions against Russia, pointing directly to the "fantom fleet" supporting Moscow's oil exports, while Stockholm claims that the Western Agenda has been reversed by the unacceptable return of the United States.
The new, 20th package of European Union sanctions against Russia should be aimed at blocking the so-called “shadow fleet” of the Russian Federation, which allows Moscow to receive revenues from oil exports.
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