The price cap on Russian oil could change significantly if the EU implements a full ban on maritime services, as proposed by Finland and Sweden.
The European Commission is consulting with G7 partners on the future of the price cap before presenting a new package of sanctions against Russia. Among the measures under consideration is a complete ban on the provision of maritime services, including insurance, shipping, and port access, for vessels transporting Russian oil and petroleum products, reports Euronews.
Until now, such services were only allowed for tankers that comply with the G7 price cap, which was recently lowered to $44.10 per barrel. This dynamic model is enforced by the EU, the United Kingdom, Canada, and Japan, while the U.S. still maintains a cap of $60 per barrel.
Introducing a full ban would make the price cap unenforceable within the EU, as all services for Russian vessels would be prohibited without exception. Finland and Sweden believe that such a measure would increase costs for Russia’s oil industry, be easier to implement, and reduce abuse through falsified documentation.
However, some member states are concerned, particularly if other G7 countries do not support the initiative, as the decision would require unanimity among all 27 EU members.
Brussels is trying to coordinate the measures with Washington, which has previously sanctioned Rosneft and Lukoil. Nevertheless, the U.S. is cautious about changing the maximum price, partly due to ongoing peace negotiations between Russia and Ukraine.
In addition to maritime services, the new sanctions package may expand the blacklist of the so-called “shadow fleet,” sanction entities that help Russia bypass sanctions, and prohibit imports of certain Russian metals.
The EU aims to adopt its 20th sanctions package by February 24, as the war enters its fourth year, sending a message of continued strong support for Ukraine.
