After lengthy negotiations and several unsuccessful attempts, the ambassadors of the Member States to the European Union (Coreper) have finally reached an agreement on capping the price of Russian oil exported by sea at $60 per barrel, the Czech Presidency of the EU Council said on Friday 2 December.
According to our information, the agreement also includes an adjustment mechanism to revise the level of the cap every two months, ensuring that any readjustment leaves it at least 5% below the market price.
Under pressure from Poland and the Baltic States, the agreement reinforces the proposal of the G7 countries discussed by Coreper last week, which initially envisaged a cap of between $65 and $70 a barrel.
This measure aims to reduce Russia’s income from oil sales, while preventing a spike in world prices. Any transaction above the threshold would not be eligible for related services, such as insurance, a sector dominated by Westerners, and could not theoretically be carried out.
The agreement comes just days before the EU embargo on Russian crude oil (see EUROPE 12961/1) comes into force on 5 December.
Once the written procedure for the adoption of the agreement is finalised, the decision will be published in the Official Journal of the EU and will enter into force. However, the agreement still needs to be approved at G7 level. (Original version in French by Damien Genicot)