Denmark’s Role in Tightening Russian Oil Price Cap Not Mentioned in Sanction Proposal

The latest European Commission’s proposal for tightening the implementation of the $60/bbl price cap on Russian crude oil as part of the 12^th sanction package does not make any reference to inspections of tankers in Danish straits, or to Denmark, EU diplomats said on Wednesday.

• “We have seen nothing about it in the Commission proposal,” one EU diplomat familiar with the Commission text said, and two other sources confirmed.
• Earlier reports by the FT states that Denmark will be tasked with inspecting and potentially blocking Russian oil tankers sailing through its waters under new EU’s plans as a way enforcing a price cap on Moscow’s crude.
• Reports said that Denmark would target tankers transiting through the Danish straits without Western insurance, adding that all of Russia’s oil shipped through the Baltic Sea, or around 60% of its total seaborne exports, crosses the Danish straits on its way to international markets.
• Following these reports, the Kremlin has called for Denmark to abide by international shipping rules in response to potential EU plans for Denmark to scrutinize Russian cargoes in its waters.
• "Everybody should be warned in advance in this regard about the need to comply with all the rules of international mercantile shipping," Russian Transport Ministry, Peskov said.