FT: EU proposes to lower price cap for Russian oil to US$45

The Financial Times has learned that the European Commission and the most influential EU member states are insisting on lowering the upper price cap on Russian oil to US$45 to strengthen sanctions against Russia. However, this idea has not yet convinced all 27 EU member states and their G7 partners.

As reported by Financial Times, according to people familiar with early discussions on the 18th package of EU sanctions, Brussels is seeking to take more substantial measures against Russia, particularly to lower the price cap on crude oil exports from US$60 to US$45 per barrel.

At last week's meeting of G7 finance ministers, Canada proposed including clear wording on tightening oil price restrictions in the joint statement.

The proposal was supported by the EU and G7 members France, Germany, Italy and the United Kingdom. However, according to three officials familiar with the meeting, it was not included at the request of US Treasury Secretary Scott Bessent.

The final statement included language committing G7 countries to continue to explore all options, including options to maximise pressure, such as further strengthening sanctions, if no ceasefire agreement is reached.

Officials said that EU countries that had previously been reluctant to support the idea of oil price caps, such as Hungary and Greece, are still considering the proposal.

Meanwhile, Finnish Foreign Minister Elina Valtonen believes that the price cap on Russian oil should be lowered to US$40 per barrel.

Ukraine has called on the European Union to lower the maximum price for Russian oil to US$30 per barrel.