EU Agrees on $60 Per Barrel Price Cap for Russian Crude Oil

[Asia Economy New York=Special Correspondent Joselgina] The European Union (EU) agreed on a price cap of $60 per barrel on Russian crude oil on the 2nd (local time) ahead of the implementation of the Russian crude oil price cap system.

According to major foreign media, this price is about $10 lower than the current trading price of around $70 for Russian Urals crude oil. Participating countries agreed to review the price cap every two months. The plan is to maintain the price cap below 5% of the average crude oil price compiled by the International Energy Agency (IEA).

Accordingly, the 27 EU member states will begin enforcing the crude oil price cap system from the 5th, in cooperation with international partners, to force Russia to sell crude oil to each country at $60 or less per barrel.

Earlier, the Group of Seven (G7) and the EU agreed on this policy when announcing sanctions against Russia. Australia has also decided to join. For Russian crude oil exported above the cap, maritime services such as insurance and transportation will be prohibited.