The European Union will join the G7 powers in imposing a $60-per-barrel price cap on Russian oil, the Polish ambassador to the bloc said, three days ahead of an EU embargo on imports by sea.
Poland had delayed approving the adoption of the plan while it pushed for a lower price ceiling and tough new sanctions to punish Russia for its war against Ukraine and starve its military of funds.
“We can formally agree to the decision,” Poland’s EU ambassador Andrzej Sados said, explaining that Warsaw’s fellow EU members had agreed to push forward with a new ninth round of sanctions against Russia.
“We’re working on the next package of sanctions, which will be painful and expensive for Russia,” Sados told reporters.
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The EU presidency, currently held by the Czech Republic, confirmed member state ambassadors had reached an agreement on the price cap and that the decision would enter into force when published in the EU official journal this weekend.
The price of Urals Crude, the main variety sold by Russia, is volatile but it was trading at around $65 per barrel as EU ambassadors met to discuss the level of the cap.
But Poland, a strong supporter of its neighbour Ukraine in the battle against the Kremlin’s forces, had earlier been holding out for a lower sum.
It reportedly wanted closer to just $30 a barrel, but Sados said that the market price was expected to rise and that $60 was now a reasonable starting point.
Moscow has warned that it will not export oil to countries respecting a price cap.
