EU Agrees to Oil Price Cap on Russian Exports

The European Union (EU) member states have agreed to limit the price of oil products from Russia, which will take effect on Sunday.

The European Union (EU) member states have agreed to limit the price of oil products from Russia, which will take effect on Sunday. The 27 EU ambassadors agreed to limit the price of diesel to $100 a barrel and the price of low-end products like fuel oil to $45 a barrel. The price limits are part of the G7’s plan to cut Russia’s export income. Shipping companies carrying Russian oil products will only be able to get insurance and financing from the West if they pay less than the price limit. The Swedish rotating presidency of the EU said this agreement is important as it is “part of the continued response by the EU and partners to the Russian war of aggression against Ukraine.”

Poland and the Baltics were successful in demanding a review of the cap level every two months. On the other hand, other G7 states, like the US, are not as interested in this mechanism because it could make energy markets less stable. The first review will be conducted by Mid-March and will consider the impact of the cap on the Russian budget and EU member states as well as its effect on the market, including any potential turbulence.


The current market price for diesel is around $110-$120 a barrel, while the cap is lower. Due to the extra costs of refining and handling, high-quality refined fuels like diesel and gasoline are usually more expensive than crude oil, which is trading near $80 a barrel. However, since the full-scale invasion of Ukraine, diesel prices have increased as Russia was Europe’s largest external supplier of fuel, and many European buyers have already turned away.

The EU imposed a $60-a-barrel price cap on Russian crude oil in December, which also comes with a review every two months. The US led the way on the cap, following pressure from central and eastern European capitals, who argued that the level had to be adjusted regularly to keep reducing Russia’s war revenue. A senior Treasury official from the US defended the crude oil price cap mechanism, saying that the intent is not to crash the Russian economy but to force the Kremlin to choose between propping up its economy and paying for their war.


Some countries wanted to tighten trade sanctions against Belarus, a key ally and military supporter of Moscow in the war. This made it harder for the 27 capitals of the EU to agree on the cap level and come to a decision about the price cap. To reach an agreement on the price cap, the debate over Belarus sanctions has been shifted to a discussion later this month.



Please enter your comment!
Please enter your name here

Read More

Sheikh Mohammed appreciated and congratualtes winners 25th edition of the Dubai International Holy Quran

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Vice-President and Prime Minister of the UAE (United Arab Emirates), received guests of the President, scholars, His Highness Sheikh Khalifa bin Zayed Al Nahyan, as well as judges, guests and supreme committee members of the Dubai International Holy Quran Award, at the Shindagha Majlis in Dubai.

Gault&Millau conducts its inaugral event in Dubai

The Gault&Millau UAE has conducted its first event in the region with a special invitation-only celebration held at Burj Al Arab Jumeirah in Dubai.

Tibetans persecution continues by Chinese authorities: reports

Lhasa, Tibet: Chinese Authorities continue to exploit Tibetans both inside and outside of Tibet for their cultural values and beliefs, wrote Janet Rice, a Senator in Australian Parliament, who has confirmed in the Tibet Rights reports.


UAE records 229 new COVID-19 cases in last 24 hours

The United Arab Emirates (UAE) Ministry of Health and Prevention on Tuesday, 19 April, recorded 229 cases of the COVID-19 virus, along with zero deaths and 408 recoveries.

Coldplay to perform at Dubai Expo 2020

Dubai, UAE: British rock band formed in London - COLDPLAY, will be seen playing and singing their marvellous songs on the stage set at...

UAE’s upcoming public holiday; All you need to know

Recently UAE celebrated the birthday of Prophet Muhhamad as UAE authorities announced aid public holiday in the private sector on October 8. If you are looking for another public holiday, here are some of them.