Divergent Opinions on Severity of Russian Oil Cap Remain

EU member states remain at odds over setting a Russian oil price cap with complaints that $62/bbl remains too leniant.

• The Russian oil price cap is at the forefront of discussions this week as the EU pushes to find consensus ahead of its ban on Russian oil import December 5.
• To try and appease more hardline calls from Poland and the Baltic nations, a cap of $62/bbl has been put on the table which is still a long way off their desired levels. Price reporting agencies place current Russian oil sales in the low $50/bbl region, negating any impact of current proposed caps.
• Lithuania has asked for a price cap “as low as possible”, while Estonia has called for a level that will cause Russia “pain.”
• Lithuanian Foreign Minister Gabrielius Landsbergis said “there is no pressure on us to agree to set the price as it is now,” adding, “We’re talking about a ceiling that prices are currently not even reaching,”.