Putin sees red as EU plans to lower oil barrel cap

The European Union is expected to propose this week that G7 finance ministers support lowering the price cap on Russian oil from $60 to $50 per barrel.

While EU Commissioner for Economy Valdis Dombrovskis did not confirm a specific price, several sources indicated that the bloc is preparing to suggest a $50 cap—a move that would significantly reduce Russia’s oil revenues.

"This is something we flagged from the Commission's side in the context of the 18th sanctions package. I would expect some interest also from other G7 partners in this regard and some discussion," Dombrovskis said.

The G7 first imposed a $60 price cap on Russian crude in December 2022, as part of sweeping Western sanctions following Russia’s invasion of Ukraine.

Earlier this year, G7 nations had considered reviewing the cap, but no changes were ultimately made.

Ukraine has pushed for an even lower cap of $30 per barrel, arguing it would do more to disrupt Moscow’s ability to finance its war effort.

(QG - Source: Reuters / RBC Ukraine — Picture : © Unsplash)