EU Agrees to Set Price Ceiling on Russian Oil Exports

Xinhua News Agency, Brussels, December 2 (Reporter Kang Yi) On the 2nd, the EU agreed to set a price ceiling of US $60 per barrel for Russian oil exports.

After the final stage of negotiations, the Czech Republic, the rotating presidency of the European Union, said on social media on the second day that EU member states had reached an agreement on setting a price ceiling for Russian seaborne oil exports on the same day. The agreement still needs to be formally approved through written procedures, and relevant details will be announced on the 4th.

According to this price ceiling, if the price of oil exceeds the threshold of US $60 per barrel, it will be prohibited to provide insurance, financial and other services for Russian oil transportation.

The Group of Seven finance ministers reached an agreement in September to set a price ceiling on Russian oil exports. According to the agreement, the Group of Seven will impose price limits on Russian crude oil from December 5, and on Russian refined petroleum products from February 5 next year. Russia said it would not supply oil and petroleum products to countries that impose price limits on Russian oil. Proposals such as restricting oil imports from Russia and setting a price ceiling on Russian oil can only lead to soaring oil prices like natural gas prices.