Brussels: The European Union has finally agreed to set a price ceiling for Russian oil.
According to the details, the European Union has agreed to set the price of Russian seaborne crude oil at $60 per barrel.
According to EU President Ursula van der Leyen, the price cap will significantly reduce Russia’s income, as Russia will only be able to export oil at subsidized prices by tanker.
Russia, on the other hand, has refused to accept any such limit, saying such a decision would affect the entire market system and negatively impact the global oil industry.
According to Reuters, Group of Seven (G7) countries and Australia said on Friday they had agreed to set a price ceiling on Russian offshore oil at $60 a barrel, before European Union members agreed to do so. I overcame resistance from Poland.
The EU agreed to the price after support from Poland, paving the way for formal ratification at the end of the week. The G7 and Australia said in a statement that the price cap would come into force on or shortly after December 5.
Meanwhile, the U.S. has said the new cap on Russian oil prices would hit Putin’s most important source of income, U.S. Treasury Secretary Janet Yellen said the price cap, which was formally approved by Western allies on Friday. , has emerged after months of hard work.
Low- and middle-income countries, which have been hit hard by high energy and food prices, will particularly benefit, he said. He said the limit would further limit Russian President Vladimir Putin’s finances.