Finland: Russian Oil Price Cap Could Be Lowered to $40

Finnish Foreign Minister Elina Valtonen has called for a tougher stance on Russia by reducing the current oil price cap to $40 per barrel, down from the current $60, The Gaze reports, citing yle. 

The measure, she said, would be an effective way to curb Moscow’s ability to fund its war against Ukraine.

“I would say we could even be talking about $40. But any reduction would be beneficial,” Valtonen stated in an interview with Yle. She emphasized that the market price of oil has dropped in recent weeks, suggesting that there is room to lower the cap accordingly.

The oil price cap, imposed by the G7 nations, restricts the use of Western tankers to transport Russian oil unless it is sold below the threshold. The policy was introduced to limit Russia’s revenues from energy exports, thereby constraining its ability to finance the war.

Valtonen noted that Finland, together with other Nordic and Baltic countries, had already proposed the price cap reduction back in January. While she says many G7 members are open to the idea, the final decision depends on the United States.

“At the moment, we are waiting to see what the U.S. position will be—whether they want to tighten restrictions on Russia or not,” she said.

Valtonen also confirmed that the EU foreign ministers will approve the bloc’s 17th sanctions package against Russia on Tuesday. This round is expected to target Russia’s so-called “shadow fleet,” a network of ships used to evade existing oil sanctions.

As The Gaze previously reported, the EU Foreign Affairs Council is to approve the 17th package of EU sanctions against Russia on Tuesday, 20 May, and three more packages of sanctions in addition to it: on Russia's hybrid activities, human rights violations and the use of chemical weapons, an EU official involved in the preparation of these documents said.