EU’s New Price Cap on Russian Oil to Take Effect September 3
A newly reduced price cap on Russian oil, adopted as part of the EU’s 18th sanctions package against the Russian Federation, will come into force on September 3.
The Gaze reports this, referring to European Pravda, citing European Commission Deputy Chief Spokesperson Arianna Podestà.
In a comment to the Ukrainian media, Podestà confirmed that the lowered ceiling price for Russian crude exports will be implemented next month, marking another escalation in the EU's efforts to limit Moscow’s oil revenues.
Additionally, another element of the latest sanctions package, a ban on financial transactions involving 22 additional Russian banks, will come into effect on August 8.
Most provisions of the 18th sanctions package already entered into force in mid-July, following formal approval by the Council of the European Union.
As previously reported, the EU agreed on July 18 to lower the maximum price of Russian oil from $60 to $47.60 per barrel.
This revised ceiling will be subject to an automatic and dynamic adjustment mechanism that ensures the cap remains 15% below the average market price of Urals crude over a defined reporting period.
The United Kingdom has also announced it will align with the EU’s revised cap, setting its own limit at $47.60 per barrel.
The updated sanctions package is being described as one of the EU’s toughest yet, aimed at further reducing the Kremlin’s ability to fund its war in Ukraine.
Read more on The Gaze: How Sanctions Against Russia Taught the West Dynamic Financial Blockades