The EU agreed to impose a cap on Russian oil at 60 euros per barrel after long deliberations, approving a proposal that had been advanced by the G7 group in order to reduce the revenue of Moscow which has been accused of instrumentalising energy.

The news of the maximum price, which was expected in the last few hours, was made known by Polish diplomat Andrzej Sados and other Europeans involved in the talks, according to Bloomberg. Discussions on the cap on Russian oil lasted more than a week. The embargo on Russian oil imports will begin on December 5.

The $60 a barrel price is slightly lower than what big buyers of Russian oil such as China and India pay, but it will not apply if the buyers ship and insure cargo to companies from countries outside the bloc it imposed. the upper limit.

What does capping mean?

The cap plan would ban the transportation of Russian oil by sea and the services required for it, such as brokerage, financial assistance, and insurance if the cargo is bought above the agreed price threshold.

Most G7 nations will stop importing Russian crude by the end of the year. Similar restrictions, including a price cap, for other oil products, are expected to be imposed in February.

Putin threatens with ‘serious consequences’

Russia’s president has warned that there will be ‘serious consequences’ if a ceiling is placed on the price of Russian oil, as many countries prepare to announce their decision on the matter.

“Such actions are contrary to the principles of trade relations and will likely lead to serious consequences for the international energy market,” Putin said in a phone call with Iraqi Prime Minister Mohammed Shia al-Sudani.

According to the Kremlin statement, the two leaders discussed “attempts by a number of Western countries to impose restrictions on the price of Russian crude.”

The European Union and the United States have been intensifying their efforts in recent days to reach an agreement on the maximum price of Russian oil they import.

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