EU and Allies Seek to Strengthen Price Cap on Russian Oil.

EU and Partner Countries Discuss Sanctions Against Russia and Oil Prices

A meeting of the European Union and 12 partner countries took place in Brussels, where issues regarding the effectiveness of sanctions against Russia and increasing the price cap on Russian oil for the Group of Seven (G7) countries were discussed.

The measures introduced by the G7 together with the EU at the end of 2022 involve setting a price cap on oil at $60 per barrel. This cap led to the blocking of access to Western transport services and insurance for oil purchased at a price higher than the proposed cap. These measures were intended to reduce Russia's funding of the war in Ukraine.

However, over Time, the effectiveness of these caps has decreased due to Russia's use of a "shadow" fleet of old tankers, which pose a high risk of accidents. Western countries have started imposing sanctions on such vessels to restore trade.

The meetings on sanctions were chaired by EU representative David O'Sullivan, who in his statement during the meeting noted that there is still a lot of work, and everyone must continue these efforts.

According to the Commission, Russia has spent nearly half of its budget on defense and security. They also claim that Russia pays 130% more for semiconductors and over 300% more for machine tools through Turkey and China than before the invasion of Ukraine. Therefore, the EU will look into financial institutions and the transit of goods from Southeast Asia through China, which are used by the Russian military.

It should be noted that China remains the biggest problem that needs to be addressed.