EU delays talks on Russian oil price cap until next week - diplomats
Reuters
Published Nov 25, 2022 10:23AM ET
Updated Nov 25, 2022 12:46PM ET
By Jan Strupczewski
BRUSSELS (Reuters) -A meeting of European Union government representatives, scheduled for Friday evening to discuss a Group of Seven (G7) proposal to cap Russian seaborne oil prices, was cancelled, EU diplomats said.
"There was not enough of a convergence of views," one diplomat said.
"There won't be a meeting tonight nor this weekend," a second diplomat said.
On Thursday, European Union governments were split on the level at which to cap Russian oil prices to curb Moscow's ability to pay for its war in Ukraine without causing a global oil supply shock. The cap is to enter into force on Dec. 5.
The idea of the cap is to prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price set by the Group of Seven nations and its allies.
Because the world's key shipping and insurance firms are based in G7 countries, the price cap would make it very difficult for Moscow to sell its oil - its biggest export item accounting for some 10% of world supply - for a higher price.
Poland, Estonia and Lithuania were pushing for a much lower cap than the $65-70 per barrel proposed by the G7, while Greece, Cyprus and Malta lobbied for a higher cap, or some form of compensation for the expected loss of business to their large shipping sectors.
The EU diplomats, who declined to be identified, said it was not clear how near both sides were to an agreement.
"The latest is that Poland, Estonia and Lithuania are trying to outdo each other on their toughness on the price cap," one of the diplomats close to the talks said, adding that Poland wanted to link agreement of the price cap to a new package of sanctions against Russia.
"Meanwhile Malta, Greece and Cyprus are in it for the money, whichever way they can get it - through a higher cap, or compensation, etc. So positions are still very far apart and the U.S. is nowhere to be seen to bring the two sides together," the diplomat said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.