Von der Leyen Proposes Cut to Oil Cap to Turn Screw on Russia

The EU executive has called for lowering the price cap on Russian oil as it seeks to tighten energy and financial sanctions against the Kremlin's ability to wage war.

- Jennifer Rankin

The president of the European Commission, Ursula von der Leyen, proposed that western countries reduce the price at which Russian oil can be sold to $45 (£30) a barrel, down from the current $60.

The $60 price cap was agreed through the G7 group of countries in December 2022, when oil traded at well over $100 a barrel, with the aim of reducing Russia's revenues from fossil fuels. Now experts have said the falling price of oil, which hit a four-year low of $59.77 in April, had rendered the cap "meaningless". A barrel of Brent crude has since recovered to about $67.

Von der Leyen said that oil exports represented one-third of Russian government revenues, adding: "We need to cut this source of revenues."