EU delays negotiations on Russia’s oil price ceiling until next week

© Reuters. FILE PHOTO: Model of a natural gas pipeline, EU and Russia flags, July 18, 2022. REUTERS/Dado Ruvic/Illustration/FIle Photo

By Jan Strupczewski

BRUSSELS (Reuters) – A meeting of European Union government representatives is scheduled for Friday night to discuss a proposal by the Group of Seven (G7) to limit the price of oil transported by rail. Russia’s sea route, has been cancelled, EU diplomats said.

“There is not enough convergence of views,” said one diplomat.

“There will be no meetings tonight or this weekend,” a second diplomat said.

On Thursday, European Union governments disagreed over how much to limit Russia’s oil prices to limit Moscow’s ability to pay for the war in Ukraine without triggering a global oil supply shock. This limit will go into effect on December 5.

The idea of ​​the limit is to prohibit shipping, insurance and reinsurance companies from handling shipments of Russian crude around the globe, unless it is sold for less than the price set by the Group of Seven and other currencies. set forth by them.

Because the world’s key shipping and insurance companies are based in the G7 countries, the price cap will make it very difficult for Moscow to sell oil, the country’s biggest export, accounting for about 10 percent of its resources. world supply – at a higher price.

Poland, Estonia and Lithuania are pushing for a much lower ceiling than the $65-70 per barrel proposed by the G7, while Greece, Cyprus and Malta lobby for a higher ceiling, or some form of compensation for the expected loss of business to their large company. shipping fields.

EU diplomats, speaking on condition of anonymity, said it was unclear how close both sides were to an agreement.

“The latest is that Poland, Estonia and Lithuania are trying to outdo each other in terms of how tough they are on the price ceiling,” said one of the diplomats close to the negotiations, adding that Poland wanted to link concluded a deal on a price ceiling with a new package of sanctions against Russia.

“Meanwhile Malta, Greece and Cyprus join for the money, whatever way they can get it – through higher limits, or compensation etc. So the positions are still very far apart and The United States is not seen to bring both sides together,” the diplomat said.


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