European Union diplomats are close to finalising an 18th round of sanctions against Russia, with a key component being a revised, lower price cap on Russian oil, according to four EU sources.
Reuters reporting. In brief:
While nearly all parts of the package are agreed upon, one member state—reportedly Slovakia—still has technical reservations but is expected to sign off soon.proposal includes a dynamic pricing mechanism, with the cap set at 15% below the average global crude price over the past 22 weeks.would initially place the cap at around $47 per barrelwill be reviewed every six months rather than quarterly
Slovakia had delayed the package due to concerns over phasing out Russian gas
has now agreed in principle
The package also includes:
A ban on transactions with Russia’s Nord Stream pipelines
Restrictions on financial networks helping Russia evade sanctions
New listings including a Russian-owned refinery in India, two Chinese banks, and a flag registry used by Russia’s shadow oil fleet
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The sanctions require unanimous support from all EU members. This effort is part of a broader push by the EU and UK to make the current G7-imposed $60 cap more effective, as falling oil prices have made the existing level less meaningful.
The formal agreement is expected Monday, ahead of a foreign ministers’ meeting on Tuesday in Brussels for approval.
This article was written by Eamonn Sheridan at www.forexlive.com.