Latest EU Discussions on Russian Cap Fail to Find Consensus

There was hope that EU talks last night might represent a breakthrough towards an agreement on a Russian oil price cap but diplomats remain divided.

• Diplomats discussed a lower price cap of $62/bbl, down from the $65-70/bbl region but it is still too high for Poland and the Baltic nations.
• They have disputed the level saying it is already well above the level at which Russian oil is being sold, which is around $52/bbl.
• The group opposed to $62/bbl also want to see a review mechanism added to the instrument for later price revisions, as well as a firmer plan on a new package of sanctions on Russia.
• An EU agreement, which the bloc had hoped to secure last week, would pave the way for a broader Group of Seven deal.
• When asked about EU talks last night, US National Security Council Spokesman John Kirby said “those discussions are going on in a pretty robust fashion” and “going well.”
• He added “Our EU colleagues are working through the modalities of that right now, how that would be implemented, what level it’s going to be at,” Kirby said at a White House briefing. “I don’t think we believe there’s a pressure on us right now to get more involved than we already are.”