European Commission agrees to cap Russian oil price at $60 a barrel

European Commission agrees to cap Russian oil price at $60 a barrel

President of the European Commission said that the caps on prices have three objectives.

European Commission President Ursula von der Leyen said on Friday, 2, that the European Union, G7 members and other countries have struck a deal to impose a cap on Russia’s oil price.

Earlier, Dow Jones Newswires reported from diplomatic sources on the agreement among EU members for a cap on Russian oil at $60 a barrel.

Ursula von der Leyen said that the cap on the price has three objectives:

The first is to reinforce the veto already planned to take effect from the 5th on purchases of Russian oil by the EU and allies.
A second reason is to reduce Moscow's revenue from the commodity at a time when Vladimir Putin's regime is conducting a war in Ukraine.
"And thirdly, at the same time, this will stabilize global energy prices," she said.

According to Ursula von der Leyen, the initiative allows “some” oil from Russia to be transported and traded, with the participation of European brokers and other companies involved in such operations to third countries, as long as the price cap is respected.

The cap will be further adjustable over time, so that it will be possible to react to changes in the market, Ursula von der Leyen explained.

At the same time, she stresses the unity in opposition of the EU and allies against Russia’s “atrocious war” in Ukraine.

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