EU announces new approach to sanctions against Russia

The European Union is studying the option of tying the so-called price ceiling on Russian oil to global market quotations. This is reported by Reuters with reference to informed sources.

Within the framework of this initiative it is planned to establish a floating price limit, which will be 15% lower than the current market price and will be reviewed every three months. In the first phase, the ceiling is expected to be lowered from the current $60 to $50 per barrel.

Previously, Greece, Malta and Cyprus were opposed to lowering the price ceiling because their economies are heavily dependent on shipping. However, these countries are now open to considering the new idea.

The price ceiling was previously criticised for its low effectiveness in practice, but it was on its basis that the European Union imposed additional sanctions against Russian oil infrastructure.

According to insiders, the decision to introduce a floating ceiling has not yet been finally approved. The measure is seen as part of the EU's 18th package of sanctions, which is currently being blocked by Slovakia. Robert Fitzo's government is demanding either the resumption of Russian gas supplies or compensation for its loss.

The agency points out that the level of the price ceiling will largely depend on the US position.