Ukraine, the EU challenges Putin: agreement on the ceiling of 60 dollars for Russian oil

Ukrainian war and price cap for Russian oil, the measure will come into force upon publication in the Official Journal of the EU

After a long wait, the agreement has arrived: the Member States of theEuropean Union have reached an agreement to impose a cap on the price of Russian oil transported by ship to third countries. Two sources of the EU presidency relaunched byAdnkronos confirm that the level set for theUrals OilRussia’s reference crude oil for exports, is $60 a barrel which yesterday quoted just above $64, according to OilPrice.com. L’Urals it is a lower quality oil than the Brentcrude oil from the North Sea which is the European benchmark, therefore usually priced below the latter.

The spreads compared to Brent it has been expanding after the invasion ofUkraine as a result of Western sanctions, which have alienated many buyers, making it cheaper because it is less in demand on the market. The Russian oil it is still sold to several countries, including India: Moscow became the first supplier last October of crude oil from the Subcontinent, overtaking countries that traditionally supply Delhi, such as Saudi Arabia and Qatar.

The cap should be implemented by leveraging the shipping companies, EU-based insurance and reinsurance companies, which will not be able to transport, insure or reinsure Russian crude oil destined for non-EU countries, if sold at a higher price. The written procedure now begins: the measure will enter into force upon publication in the EU Official Gazette. “The EU is united and alongside Ukraine”, assures the Czech presidency via social media.

The agreement arrived today if on the one hand it paves the way for a broader agreement at the G7 levelon the other hand it will not stop feeding the threats of the Russian president Vladimir Putin which has repeatedly reiterated that it will suspend supplies of crude oil and gas for whoever imposes the claimed price.

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