Poland has blocked the EC’s proposal for a price limit on Russian oil

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2022-11-24 12:04

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2022-11-24 12:04

Poland has blocked the European Commission’s proposal to limit the price of Russian oil at USD 65 per barrel, EU diplomatic sources in Brussels told PAP. “If we are going to hit the Russians in the pocket, it has to be realistic,” says an EU diplomat, noting that the proposed amount should be lower. Talks on this matter are to be continued in Brussels.

photo: The Sun photo / / Shutterstock

According to PAP information, the proposal was blocked at the meeting of ambassadors by the Permanent Representative of Poland to the EU Andrzej Sadosia.

“Market prices are currently below the proposed $65 per barrel price cap. In such a situation, it makes no sense to introduce an exemption for the transport of oil above the market price. It would be a promotion of Russian oil,” said an EU diplomat.

He added that Poland wants to set the limit well below the market price. “If we are going to hit the Russians in the pocket, it has to be realistic. The point is to reduce Russian revenues, not to keep them at the same level,” he stressed.

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The G7, including the US and the European Union, are set to introduce a price cap on Russian oil exports by sea on December 5.

The move is said to be part of sanctions aimed at reducing Moscow’s revenue from oil exports so that it has less money to finance its invasion of Ukraine.

The idea behind the price cap is to prohibit shipping, insurance and reinsurance companies from handling shipments of Russian oil around the world unless it is sold for no more than the maximum price set by the G7 and allies.

On Thursday, representatives of 27 countries discussed in Brussels a proposal to set a price ceiling in the range of USD 65-70 per barrel.

The cost of producing a barrel in Russia is about $20

From Strasbourg Łukasz Osinski

Source:PAP

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