EU member states have reached a preliminary agreement on a price cap for Russian refined petroleum products, but are still haggling over whether to impose a regular review of the cap, the Financial Times reported, citing the rotating Swedish presidency.
Permanent representatives of the 27 EU countries agreed at a meeting on Friday to impose a cap of $100 a barrel on high-quality Russian oil products such as diesel and a cap of $45 on low-grade products such as fuel oil, sources familiar with the financial publication said with the agreement.
The price cap will allow shipping companies carrying Russian oil products to access Western insurance and financing, but only if they pay for those products less than the level prescribed by the union.
However, talks continue over whether the EU should include a mandatory review clause that would force Brussels to carry out an impact analysis of the imposed cap every two months with a view to adjusting price levels, the Financial Times’ sources said, adding that failure to an agreement is reached on this could lead to the collapse of the entire contractual package.
A number of EU countries, including Poland and the Baltic states, are pushing for a review of the cap level, in addition to a review of the $60-a-barrel price cap imposed on Russian oil in December. According to these countries, the price ceiling should be regularly adjusted to continue reducing funds for Russia’s war in Ukraine.
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