Bloomberg: EU considers freezing Russia oil price cap due to Middle East war

The European Union is considering temporarily freezing the price cap on Russian oil as the Middle East conflict has pushed global energy prices higher. Bloomberg reported the information citing anonymous sources.

The European Union is discussing the possibility of temporarily freezing the price ceiling on Russian oil, Bloomberg reports citing sources. The discussion comes against a backdrop of rising global energy prices, driven by military conflict in the Middle East.

The price cap on Russian oil was introduced in 2022 through cooperation between G7 countries and the European Union with the aim of limiting Moscow's war revenues. It is currently set at $60 per barrel. As global oil prices rise and remain close to or above the imposed cap, the mechanism becomes more difficult to implement.

Freezing the cap would in practical terms mean that the price ceiling would not be adjusted according to market conditions, but would remain at the current level. Critics warn that such a step could weaken the impact of sanctions against Russia at a time when the war in Ukraine continues. Supporters, however, argue that stability in the energy market is currently paramount.

Bloomberg did not specify when the EU might make a final decision. According to sources, this is still in the initial deliberation phase and no formal proposals have yet been submitted.