EU considering tougher Russian oil price cap as bloc aims to pass 18th sanctions package, Bloomberg reports
The European Union is considering imposing a new Russian oil price cap as part of its 18th sanctions package against Moscow, Bloomberg reported on July 11.
The proposed price cap would be set at 15% below the market rate based on a 10-week average, lowering the threshold to $50 down from the current cap of $60, people familiar with the matter told Bloomberg.
The EU has been unable to pass the sanctions due to opposition from Slovakia, whose authorities have increasingly aligned themselves with Moscow and oppose the package.
Estonian Foreign Minister Margus Tsakhna has previously said the Baltic country may also veto the EU's 18th sanctions package against Moscow if the oil price cap is not lowered to increase pressure on Russia.
The sanctions are still in the works as the bloc faces additional disagreements among member states regarding changes to the oil price cap.
Mediterranean members, including Cyprus, Greece, and Malta, have opposed a tougher Russian oil price cap but are open to the proposal, the sources told Bloomberg.
The three countries have been reluctant to impose a new cap without support from the U.S. or the Group of Seven (G7).
The countries have softened their stance as oil prices have fallen again following an initial uptick amid the U.S. bombing of nuclear facilities in Iran, people familiar with the matter said.
Support for a new oil price cap from U.S. President Donald Trump would make a substantial difference, they added.
The new oil price cap would not be set the same way as the current $60 cap per barrel and instead would be revised every three months based on market rates.
A decision has not been made by the EU and requires unanimous support from all of the bloc's members, the people familiar with the matter said.
The EU's executive branch is prepared to offer Slovakia assurances in exchange for its support for the 18th sanctions package, one of the sources added.
EU ambassadors reportedly failed to approve the 18th sanctions package during a July 9 Committee of Permanent Representatives meeting due to opposition from Slovakia.
Unlike Hungary, which has consistently opposed sanctions and military aid for Ukraine, Slovakia has not previously blocked new EU measures.
Tsakhna previously said that the 18th sanctions package was originally meant to include a tougher Russian oil price cap, lowering the maximum cost per barrel from $60 to $45.
Meanwhile, there are signals that the G7 nations are ready to impose an even lower Russian oil price cap, he added.
Tsakhna noted that if a strong 18th EU sanctions package were passed alongside a hard-hitting sanctions bill by the U.S. Senate, Russia would feel serious pressure.
The bloc is set to introduce the "toughest sanctions... imposed (on Russia) in the last three years" in coordination with U.S. senators, French Foreign Minister Jean-Noel Barrot said in a television interview on July 7.