The EU's Strategic Shift: Re-evaluating Russian Oil Price Caps

The European Commission is set to propose a new floating oil price cap targeting Russian crude, adjusting to global market changes. Amidst varying support from EU and international leaders, the commission aims to curb Russia's financial resources amidst continued geopolitical tensions related to the Ukraine conflict.

The European Commission is poised to introduce a floating oil price cap aimed at Russian crude in a bid to revamp the EU's sanctions strategy, according to four EU diplomats. The move comes amidst ongoing resistance from some member states.

This new proposal follows an earlier suggestion to lower the current G7 price cap, set at $60 a barrel, to $45, in reaction to declining global oil prices. This shift is part of broader efforts to limit Russia's financial resources as the Ukraine conflict continues.

Despite previous setbacks in gaining international consensus, particularly from the U.S., the EU is determined to proceed. However, internal challenges persist, as Greece, Cyprus, and Malta express concerns over potential impacts on their shipping industries.

(With inputs from agencies.)