US Reluctant to Review Russian Oil Price Ceiling

Oil Stocks
Oil Stocks

The United States is reluctant to review the price cap on the Russian oil despite Estonia, Poland and Lithuania’s insistence to decrease the ceiling, Politico reported on Wednesday, citing EU diplomats.

Earlier in March, media reported that Poland and Lithuania suggested lowering the price cap to $51.45 from $60 per barrel.

“The U.S. doesn’t want to do it. Estonia, Poland and Lithuania are pushing too far, especially given the reluctance from the U.S. This is not going to happen,” an unnamed EU diplomat was quoted as saying in the report.

The report said that the EU’s ambassadors were set to discuss sanctions against Russia and the price ceiling on Wednesday.

On March 7, Assistant Secretary of the US Treasury for Terrorist Financing and Financial Crimes Elizabeth Rosenberg confirmed to Sputnik that the Group of Seven would reevaluate the price cap on Russian oil in March to determine if any recalibration is needed, but did not disclose if they believe it is working to sway Russia’s policy.

In December 2022, the European Union stopped importing Russian oil transported by sea. The G7 countries, Australia and the EU imposed a price cap of $60 a barrel for Russian crude oil transported by sea, blocking transport of oil bought at higher prices. In retaliation, Russia prohibited selling its oil abroad if supply contracts provide for a price cap mechanism.

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