EU Proposes New Russian Oil Price Cap Amid Global Tensions

The European Commission is gearing up to propose a new floating Russian oil price cap in an effort to quell resistance from some EU member nations. This fresh initiative comes as part of a broader sanctions package aimed at further curbing Russia's financial capacity to sustain its military actions in Ukraine.

The current $60 per barrel price cap, agreed upon by the Group of Seven (G7) nations, has been rendered less effective by a decrease in global oil prices. Despite a push by Britain and the EU, U.S. President Donald Trump did not endorse the proposed reduction during a G7 meeting in Canada earlier this year.

The new proposal aims for a more dynamic cap that adjusts in response to fluctuations in the global oil market, with initial figures suggesting a starting point just above $45 per barrel. However, maritime nations like Greece, Cyprus, and Malta express concerns about potential repercussions for their shipping industries, fearing losses if operations move outside the EU.

(With inputs from agencies.)