MOSCOW (Pakistan Point News / Sputnik - 29th November, 2022) The European Union continues to discuss imposing a price cap on Russian seaborne oil despite disagreements over its amount among member states, with Greece and other oil transporting countries seeking a higher ceiling instead of the lower cap proposed by Poland and the Baltics, an EU source told Sputnik.
On Monday, the EU failed to agree on the Russian oil price cap, since Warsaw insisted that the ceiling must be lower than that offered by the G7 countries to undermine Russia's funding for its military operation in Ukraine.
"One group of countries is suggesting a higher price cap, closer to the market value of the Russian oil and closer to what the (European) Commission proposed last week. And the other side is asking for a significantly lower price cap on Russia oil," the source said.
The first group includes those countries whose merchant navies are engaged in transferring Russian oil, Cyprus and Greece, while the other side is represented by the Visegrad Group � the Czech Republic, Hungary, Poland and Slovakia � and the Baltic nations, according to the EU source.
The first group argues for a price cap of around $70 over concerns that a lower ceiling will destabilize the oil shipping industry and the energy market in general.
"However, Poland, mostly, and the Baltics are arguing that a high price for Russian oil will have a minimum effect on Russian profits, since a price cap near to $70 is very close to the average market value of Russian oil. And they are arguing for a price cap as low as $25-30," the source told Sputnik.
Athens is seeking some sort of compensation in the event a low oil price cap is accepted, while Polish representatives are also insisting on the lower price ceiling.
The source found it difficult to assess whether the agreement on the Russian oil price cap might be accepted soon, though the source suggested that it "might take some more time" to reach a deal due to the disagreements.
"It is hard to say, but the Commission is pushing for an agreement and actively working to sort it out, since the EU embargo on Russian oil will start on the first week of December and it is important to have a decision before that date," the source added.
Western countries have been seeking ways to limit Russia's income from oil and gas exports since the country launched its military operation in Ukraine on February 24. In September, the G7 finance ministers confirmed their intention to impose a price cap for Russian oil and urged all nations to support the initiative. Moscow, in turn, has pledged to altogether stop exporting Russian oil to the countries that impose the price cap.
