US EditionWill Europe’s $50 Russian Oil Price Cap Plans Thwart the ‘Shadow Fleet’?
- In May 2025, the EU plans to recommend that G7 finance ministers reduce the Russian oil price cap from $60 to $50 per barrel.
- This proposal arises from concerns that Russia bypasses the imposed price limit by utilizing a covert network of roughly 500 to 700 older tankers with unclear ownership structures.
- In April 2025, shadow tankers were responsible for carrying 65% of Russia’s crude oil shipments, despite efforts through the price cap to limit Moscow’s earnings from its war in Ukraine.
- Valdis Dombrovskis indicated that other G7 members are likely to show support and engage in conversations about reducing the cap.
- Analysts argue that curbing the shadow fleet may increase sanction effectiveness, but efforts risk military confrontation with Russia and legal ambiguities remain.
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17 Articles
Will Europe’s $50 Russian Oil Price Cap Plans Thwart the ‘Shadow Fleet’?
The European Union will propose to G7 finance ministers to lower the price cap on Russian crude from the current $60 per barrel to $50, European Economic Commissioner Valdis Dombrovskis said. Established in December 2022, the G7 oil price cap prevents Western-allied companies from providing shipping, insurance, and related services for Russian crude sold above $60 per barrel. The main objective of the price cap is to cripple Russia's ability to …
Within the framework of a new package of sanctions against Russia.
EU Likely to Propose Lowering G7 Price Cap on Russian Oil to $50 Per Barrel
Brussels will propose to lower the current $60 per barrel price cap on Russian seaborne oil during a meeting of G7 finance ministers this week, European Economic Commissioner Valdis Dombrovskis said Monday.
At the G7 finance ministers' meeting in Canada on May 20-22, the European Union (EU) will propose lowering the maximum purchase price for Russian oil delivered by tanker from the current $60 to probably $50 per barrel, Reuters reports.
EU Likely to Propose to G7 Lowering Price Cap on Russian Oil to $50 per Barrel
The EU will propose to G7 finance ministers this week to lower the current $60 per barrel price cap on Russian seaborne oil as part of the new sanctions package against Moscow, European Economic Commissioner Valdis Dombrovskis said on Monday.
The EU plans to propose reducing the price cap on Russian oil to the G7 nations as part of its 18th sanctions package.
European Commissioner for Economic Affairs Valdis Dombrovskis did not specify the proposed reduction, but may suggest lowering the cap from the current $60 to $50 per barrel. Dombrovskis intends to formally present this proposal during a meeting of G7 finance ministers later this week. Finnish Foreign Minister Elina Valtonen also supports the idea of strengthening sanctions against Russia, which continues its military action in Ukraine, suggesti…
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