EU presses G7 to lower Russian oil price cap, eyes $50 level

Reuters reported the information.

“Yes,” Dombrovskis said when asked if the proposal would be raised at the meeting. “This is something which we flagged from the Commission's side in the context of the 18th sanctions package. I would expect some interest also from other G7 partners in this regard and some discussion.”

Though Dombrovskis didn’t name a specific figure, EU officials familiar with the talks said the proposed cap would be $50.

The G7’s original cap, set in December 2022, aims to restrict Moscow’s oil revenue while keeping global oil supplies stable. The measure bars trade and services, like shipping and insurance, for Russian oil sold above the cap.

However, Russia has found ways around the sanctions by using a "shadow fleet" of tankers that don’t rely on Western services. Russian Urals crude has often sold above the cap, though prices dipped below $60 in early April due to global economic concerns.

The G7 includes the U.S., Canada, UK, France, Germany, Italy, and Japan, with the EU also participating in finance meetings.