EU official announces relief in negotiations for less stringent oil pricing limit towards Russia
In a bustling shift, the bones of contention between Europe and Russia are simmering, with the European Commission pondering a drop in the current oil price cap from $60 to $45 per barrel. This proposed cut, a key component of an upcoming EU-led sanction wave, was meant to be backed by the United States, but alas, it's all up in the air.
The EU had planned to make its case at the G7 summit, set amid the serene woods of Alberta, Canada, but those plans were dashed by a fiery clash between Israel and Iran. This squabble upstaged the G7 meeting, causing President Donald Trump to jet off early to tend to the crisis stateside.
Speaking slyly on the summit's sidelines, Commission President Ursula von der Leyen commented that the current $60 cap, despite being largely toothless, had managed to keep oil prices steady. Given this, she suggested that there was no immediate pressure to lower the cap.
Introduced by the G7, this $60 cap was designed to cap the amount of cash Russia could make from global oil sales by prohibiting shipping and insurance firms from colluding with Russia to export above the set cap. The gang of seven crafted this cap in late 2022, months after Putin's illegal invasion of Ukraine.
To have any real bite, the EU and its allies need Trump to jump on board and agree to the price drop. So far, Trump's response has been a headache for Western countries. Despite Putin's continued refusal to commit to a ceasefire in Ukraine, Trump has proven stubborn in inking new sanctions against the Kremlin.
“The G7 leaders, with Trump still in the room on Monday, discussed working together on sanctions to ramp up pressure on Putin,” von der Leyen explained. Despite Trump's presence, the EU also plans to seize the defunct Baltic Sea gas pipelines Nord Stream 1 and 2, to ensure they never see the light of day again.
"Our latest proposal for the 18th round of sanctions since the invasion serves as proof of the EU's unwavering support for Ukraine," von der Leyen proclaimed.
- Sources suggest that the current oil price cap has had limited success in reducing Russian oil revenues, but it has managed to keep prices steady. [Source 1][Source 2]
- Geopolitical factors, particularly the situation in the Middle East, have reportedly stalled the EU's decision to lower the price cap as of June 20, 2025. [Source 3]
- There is no conclusive evidence in available data that the United States has agreed to the proposed price cut as of now. Cooperation between the EU, US, and other G7 countries would likely be required for any significant change, but no confirmation of U.S. agreement was found.
- Reports have emerged that Russia recently had a significant increase in energy exports to countries like Israel, China, and India, possibly bypassing the global oil price cap and oil sanctions. [Source 4]
- Analysts predict that continued political gridlock within the United States and Canada, predominantly correlating to war-and-conflicts and politics, may pose significant challenges for effective implementation of new sanctions measures. [Source 5]
