EU Agrees to Cap Russian Oil at $60 per Barrel

European Union flags fly outside the European Commission headquarters in Brussels (Reuters)
European Union flags fly outside the European Commission headquarters in Brussels (Reuters)
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EU Agrees to Cap Russian Oil at $60 per Barrel

European Union flags fly outside the European Commission headquarters in Brussels (Reuters)
European Union flags fly outside the European Commission headquarters in Brussels (Reuters)

European countries agreed to cap Russian oil price at $60 per barrel to further weaken Moscow's ability to finance its war in Ukraine.

With this agreement, the bloc countries joined their allies in the Group of Seven (G7), especially the US, UK, and Australia, after Poland obstructed the measure before it withdrew its objection on Friday evening.

The cap is set to be implemented starting Monday when the European Union's embargo on Russian seaborne crude goes into force.

Energy expert Phuc-Vinh Nguyen of Jacques Delors Institute said Russia had earned $71 billion selling oil to EU clients since its February invasion of Ukraine.

Russia's annual defense budget is estimated at $63 billion.

"We can formally agree to the decision," Poland's EU ambassador, Andrzej Sados, told reporters after his country pressed to set a lower price, according to Agence France-Presse (AFP).

The EU presidency, currently held by the Czech Republic, confirmed member state ambassadors had agreed on the price cap and that the decision would enter into force when published in the EU official journal this weekend.

On Friday, the White House also "welcomed" the agreement, and National Security Council spokesman John Kirby told reporters Friday that "the cap itself will have the desired effect on limiting Putin's ability to profit off of oil sales and limit his ability to continue to use that money to fund his war machine."

The EU sanctioned Russian oil traveling by sea beyond the $60 limit to curb the revenue Moscow earns from deliveries to countries such as China or India.

The measure will enhance the effectiveness of the European ban, which comes months after the US and Canada ban.

Russia is the second largest exporter of crude oil in the world. Without setting a ceiling, it will be straightforward for them to reach new buyers at market prices.



Moscow Poses No Threat to Britain, Says Russia's UK Embassy

A view shows the Kremlin Wall and the State Historical Museum in central Moscow, Russia August 21, 2024. (Reuters)
A view shows the Kremlin Wall and the State Historical Museum in central Moscow, Russia August 21, 2024. (Reuters)
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Moscow Poses No Threat to Britain, Says Russia's UK Embassy

A view shows the Kremlin Wall and the State Historical Museum in central Moscow, Russia August 21, 2024. (Reuters)
A view shows the Kremlin Wall and the State Historical Museum in central Moscow, Russia August 21, 2024. (Reuters)

Russia's embassy in London said on Tuesday that Moscow had no intention of attacking Britain, rejecting accusations by the British government of growing aggression and daily cyberattacks.

Britain said on Monday it would radically change its approach to defense to address new threats, including from Russia, after endorsing the findings of an independently-produced Strategic Defense Review.

After unveiling the defense overhaul on Monday, Healey said Europe was facing war, growing Russian aggression, new nuclear risks and daily cyberattacks, Reuters reported.

Russia's embassy issued a statement on Tuesday criticizing what it described as "a fresh salvo of anti-Russian rhetoric".

"Russia poses no threat to the United Kingdom and its people," the statement said. "We harbor no aggressive intentions and have no plans to attack Britain. We are not interested in doing so, nor do we need to."

Relations between Russia and Britain are at their lowest level since the Cold War. They deteriorated further after Russia's full-scale invasion of Ukraine in February 2022, and Britain and other NATO members have provided large amounts of military aid and other support to Kyiv.

China's embassy in London also criticised Britain's defense review, saying in a statement on Tuesday that the document deliberately misrepresented Beijing's defense policy to justify British military expansion.

The review had described China as "a sophisticated and persistent challenge", citing its rapid military modernisation, including an expanded nuclear arsenal, and saying Beijing was likely using espionage and cyberattacks, and stealing intellectual property.