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.



Iraq Signs Contract to Construct Offshore Crude Export Pipeline With 2.4 Million Bpd Capacity

Iraqi Oil Minister Hayyan Abdul Ghani witnesses the signing of a deal to establish a subsea oil pipeline for exports via its southern ports (INA) 
Iraqi Oil Minister Hayyan Abdul Ghani witnesses the signing of a deal to establish a subsea oil pipeline for exports via its southern ports (INA) 
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Iraq Signs Contract to Construct Offshore Crude Export Pipeline With 2.4 Million Bpd Capacity

Iraqi Oil Minister Hayyan Abdul Ghani witnesses the signing of a deal to establish a subsea oil pipeline for exports via its southern ports (INA) 
Iraqi Oil Minister Hayyan Abdul Ghani witnesses the signing of a deal to establish a subsea oil pipeline for exports via its southern ports (INA) 

The Iraqi Oil Ministry said on Sunday that Baghdad has signed a deal to establish a subsea oil pipeline for exports via its southern ports.

The project is in cooperation with Italian offshore contractor Micoperi and Türkiye’s Esta for a pipeline with capacity of 2.4 million barrels per day (bpd), the ministry said without providing further detail on the destination of the exports.

“The state-owned Basra Oil Company signed a contract on Sunday to implement the third offshore export pipeline project with a consortium of the Italian company MICOPERI and the Turkish company ESTA, with a design capacity estimated at 2.4 million barrels per day,” said the Iraqi news agency quoting a statement by the Ministry.

The statement said it is “an important strategic project and is part of the government's program. It aims to ensure flexibility and stability for crude oil export operations from the southern ports”.

The Ministry also explained that the project’s flexibility lies in the ability to export crude oil from three ports: Basra Port, Khor al-Amaya Port, and the floating platform.