The EU has suspended the automatic review of the price cap on Russian oil
European Union countries have agreed to temporarily suspend, until July 23, the automatic review of the price cap on Russian oil, which was scheduled to take place on July 15.
Under the current dynamic mechanism, the price cap is to remain 15% below the average market price of Urals crude. However, due to the escalation of the war between Iran and Israel and restrictions on shipping in the Strait of Hormuz, global fuel prices have risen sharply. Without a decision, the current cap of $44.10 per barrel would automatically rise to at least $65 per barrel, which would allow Russia to significantly increase its export revenues.
By July 23, EU countries plan to finalize the 21st package of sanctions against Russia, which will include a long-term suspension of the automatic adjustment of the price cap. Restrictions will continue to affect shipping, insurance, financial, and technical companies that facilitate the transport of oil at prices exceeding the permitted limit. Agreement on the new sanctions package in Brussels is being complicated by the stance of certain countries, particularly Greece, which is seeking to protect the interests of its own liquefied natural gas (LNG) shipping companies.
Source: DIE ZEIT
Support within the European Union for imposing new economic sanctions against Russia is waning. Some member states are unwilling to back measures that could negatively impact their major companies.
Senator Lindsey Graham’s bill calls for expanding sanctions against Russia and creating additional levers of influence over the aggressor country. Kyiv believes that increasing pressure could help force the Kremlin to abandon the war and move toward negotiations. He announced this on social media.
