EU Near 18th Russia Sanctions Deal: New Oil Cap to Hit Kremlin's War Chest
EU diplomats are nearing agreement on the 18th sanctions package against Russia, set to be formally adopted on Monday. The centerpiece is a revised oil price cap, aiming to limit the Kremlin's military funding in Ukraine.
The current price ceiling of $60 per barrel has proven largely ineffective due to falling global oil futures. The new package introduces a dynamic mechanism, recalculated biannually, tied to the global market. It initially sets the cap at approximately $47 per barrel, based on the average price of Russian crude over the past 22 weeks.
The mechanism prohibits EU-based shipping, insurance, and reinsurance firms from facilitating Russian oil exports if the sale price exceeds the cap. Only one member state has a technical reservation, unlikely to block the overall agreement. The package also targets logistical and financial enablers, including a Russian-owned refinery in India and two Chinese banks.
The new sanctions package aims to constrain Russia's ability to fund its military campaign in Ukraine. With a technical agreement reached and formal adoption expected on Monday, the EU's collective effort to limit Russian oil exports is set to intensify.
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