Ukrainian Foreign Minister Andriy Sybiha on Tuesday called on the G7 countries to lower their price ceiling on Russian oil. This is happening at a meeting of EU foreign ministers in Brussels, where Sybiha was invited.
- Ukraine has shown in recent weeks that we are not the obstacle to peace. It is Putin who is continuing the war. So we must put pressure on the Russians to end the war, says Andriy Sybiha.
He is thus referring to the fact that Ukraine has accepted a proposal from US President Donald Trump for a 30-day ceasefire. So far, however, Russia has rejected the proposal for a ceasefire before the conditions for peace are in place. Therefore, there is a need to increase economic pressure on Russia by also lowering the price ceiling on Russian oil, believes Andriy Sybiha.
The current G7 price ceiling is $60 per barrel. But it should be lowered to $30 per barrel, says Ukrainian Foreign Minister.
- Our position is that the reasonable price ceiling is $30, says Sybiha.
Price ceiling since 2022
The oil price ceiling was agreed in 2022 and is set at a level that should reduce Russia's revenues while keeping global energy markets stable through continued supplies. The price ceiling prohibits trading in Russian crude oil transported by tankers if the price paid is above $60 per barrel.
The price ceiling also prohibits shipping, insurance and reinsurance companies from handling cargoes of Russian crude worldwide unless it was sold at a price lower than the price ceiling. By lowering the price cap, Russia's earnings will fall further.
The Ukrainian idea is shared in Brussels, where EU Commissioner for Economy, Valdis Dombrovskis, said on Monday that the EU will propose to G7 finance ministers to lower the current price cap. Dombrovskis did not mention the level to which the EU Commission wants the price cap lowered. EU officials briefed on the discussions say, according to Reuters, that the EU would propose $50 per barrel.
Denmark is open to lower price cap
Foreign Minister Lars Løkke Rasmussen (M) also mentioned the possibility of a lower price cap on oil as a way to hit Russia when he arrived at the ministerial meeting on Tuesday.
- More needs to be done. We have been advocating for some time that we should prepare the 18th sanctions package, said Lars Løkke Rasmussen shortly after the EU countries adopted the 17th sanctions package against Russia on Tuesday.
It affects, among other things, 189 ships in the Russian shadow fleet, which Russia uses to export oil. A total of 342 ships from the shadow fleet are now banned from calling at ports in the EU and from accessing a wide range of services in the union.
/ritzau/
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