The European Union has implemented a new package of sanctions against Russia in response to the ongoing war in Ukraine, which includes a reduction in the price of Russian oil intended for export, according to diplomatic sources.
A diplomat in Brussels announced following a meeting of EU ambassadors on Friday morning, “We have reached an agreement on a robust and effective eighteenth sanctions package against Russia.”
After receiving reassurances, Slovakia consented to the package, having previously blocked its implementation to press the European Commission for guarantees regarding its gas supplies, as the EU aims to entirely cut off Russian gas imports by 2027.
Among other measures, the new sanctions will lower the cap on the price of Russian crude oil to just above $45 per barrel, representing a 15 percent decrease from the average price of Russian oil in the market, as reported by the same sources.
The price cap had previously been set at $60 per barrel, which was deemed excessively high given the current market conditions.
The EU’s foreign policy chief, Kaia Kallas, stated, “The European Union has just approved one of the most stringent sanctions packages against Russia.”
France also welcomed the adoption of this “unprecedented” sanctions package.
Foreign Minister Jean-Noël Barrault expressed on social media, “Together with the United States, we will compel (Russian President) Vladimir Putin to cease fire” in Ukraine.
If market prices continue to decline, the new mechanism will adjust the cap on Russian oil prices down by 15 percent, which is seen as more flexible and efficient than before.
Kallas emphasized that the EU “will maintain pressure until Russia ends its war.”
European officials still hope the United States will join them in tightening sanctions, even as Washington shows hesitation regarding setting a new price for oil following the G7 agreement on $60 per barrel.
By establishing this price cap, Western nations aim to limit the financial gains Russia can obtain to sustain its war efforts against Ukraine.
Kallas noted that the $60 price has already resulted in a 30 percent decrease in Russian oil revenues.