G7 Summit: EU Pushes for Lower Russian Oil Price Cap
- European Commission President Ursula von der Leyen is pushing for a lower international price cap on Russian oil exports, suggesting a limit of $45 per barrel.
- The existing oil price cap, set at $60 per barrel, was introduced in 2022 by the Group of 7 (G7) nations.
- According to von der Leyen, the current trading price of oil is close to the cap level.
The EU is aggressively pushing for a lower price cap on Russian oil, aiming to slash it to $45 per barrel, a move designed to hamstring Moscow’s war chest. This bold initiative, spearheaded by European Commission President Ursula von der Leyen, is part of a sweeping 18th sanctions package targeting Russia’s financial and energy sectors. The existing $60-per-barrel cap, implemented by the G7, has proven insufficient. The new measures include banning imports of refined products based on Russian crude oil and targeting 77 vessels suspected of evading current price caps. News Directory 3 is closely tracking developments as EU leaders debate these critical sanctions. Discover what’s next as the G7 summit looms and these proposals face scrutiny.
EU proposes Lower Price Cap on Russian Oil exports
updated june 10, 2025
European Commission President Ursula von der Leyen is pushing for a lower international price cap on Russian oil exports, suggesting a limit of $45 per barrel. This proposal is part of an 18th EU sanctions package intended to increase pressure on Moscow.
The existing oil price cap, set at $60 per barrel, was introduced in 2022 by the Group of 7 (G7) nations. The goal of this measure is to diminish Russia’s revenue streams, thereby limiting its capacity to fund the ongoing war against Ukraine.Russian oil exports still account for a third of the government’s income, von der Leyen told reporters in brussels.
According to von der Leyen, the current trading price of oil is close to the cap level. Lowering the cap would make it more effective,she said,adding that the new price limit will be discussed at an upcoming G7 summit in Canada. In May, von der Leyen announced the EU would impose further sanctions after Russia rejected calls for a ceasefire in Ukraine.
The EU requires unanimous agreement from all member countries to implement sanctions proposed by the commission. The new package also includes further restrictions on Russia’s banking and energy sectors. Plans are in motion to sanction 77 vessels suspected of helping Moscow evade Western oil price caps, bringing the total of targeted ships to over 400. These ships often operate with unclear ownership and without insurance.
The commission also intends to ban imports of refined products made from Russian crude oil. “in this way, we want to prevent that some of the Russian crude oil reaches the EU market through the back door,” von der Leyen said.
The proposed measures include transaction bans for the Nord Stream 1 and 2 pipelines. “This means that no EU operator will be able to engage directly or indirectly in any transaction regarding the Nord Stream pipelines,” von der Leyen stated.
Sanctions on the inoperable pipelines are intended “to dissuade any interest,and notably interest from investors,in pursuing any activity on Nord Stream also in the future,” according to the commission.
The commission aims to intensify the existing prohibition on using the SWIFT system by implementing a full transaction ban, targeting an additional 22 banks. Furthermore, export bans worth more than €2.5 billion ($2.86 billion) are proposed on industrial goods,such as machinery and chemicals,as well as technology used in drone or missile production.
“With this package, we step up pressure on Russia,” von der Leyen said. “Our objective is very clear. We are reiterating the call for a full unconditional ceasefire of at least 30 days.”
What’s next
EU leaders will now consider the proposed sanctions package, with discussions expected to continue in the coming weeks. The G7 summit will also provide a forum for further debate on the oil price cap and other measures to address the conflict in Ukraine.