European Commission to propose floating Russian oil price cap

The Commission proposed lowering the G7 nations' price cap from $60 a barrel to $45 barrel in June

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BRUSSELS/PARIS: The European Commission is expected to propose a floating Russian oil price cap this week as part of a new draft sanctions package in an attempt to overcome opposition from some member states, four EU diplomats said.

The Commission proposed lowering the Group of Seven (G7) nations' price cap from $60 a barrel to $45 barrel in June in its 18th package of sanctions against Russia for its invasion of Ukraine. The G7 price cap, aimed at curbing Russia's ability to finance the war in Ukraine, was originally agreed in December 2022.

The plan to lower the price cap was prompted by a fall in global oil prices, which made the current cap largely irrelevant.