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With the so-called oil price cap, the EU aims to make it harder for Russia to wage war against Ukraine. (File photo)
German Press Agency
An agreement on a new package of EU sanctions against Russia is still a long way off. On the issue of oil, however, the member states are already sending a clear message.
The EU will not ease its sanctions regime aimed at limiting Russia's revenue from oil exports for the time being, despite the rise in world market prices due to the war in Iran. According to diplomats, representatives of the member states agreed to suspend an automatic adjustment—originally scheduled for this Wednesday—until July 23.
Without the suspension, the current price cap of 44.1 U.S. dollars per barrel (159 liters) would now have had to be raised significantly. This is provided for by a regulation designed to ensure that the price cap automatically tracks market prices and remains permanently about 15 percent below the average price of Russian crude oil. This is intended to maintain its effect of limiting Russian oil revenues.
However, the scenario of a drastic rise in world market prices as a result of the war with Iran and the near-total blockade of the Strait of Hormuz had not been considered when the decision was made. Without the suspension, Russia could have earned significantly more money from oil exports.
The suspension is intended as a temporary measure. By next Thursday, an agreement is expected to be reached on a new, comprehensive package of EU sanctions in response to Russia’s ongoing war of aggression against Ukraine. According to plans, this will include a longer-term suspension of adjustments to the so-called oil price cap.
To enforce the price cap, companies involved in transporting Russian oil at a price above the cap face sanctions. The regulation also targets shipping companies, as well as companies that provide insurance, technical assistance, and financing and brokerage services.
Negotiations over the 21st package of new EU sanctions against Russia have been ongoing in Brussels for weeks now. According to diplomats, national interests in particular are complicating efforts to reach an agreement on the new sanctions package. For example, Greece wants to protect domestic shipping companies that earn money by transporting liquefied natural gas to third countries.
15.07.2026, 18:37
