EU Tightens Sanctions on Russia with New Oil Price Cap

The European Union has announced its most stringent sanctions package yet against Russia, aiming to further hit its lucrative oil industry. The revised measure includes a flexible price cap, pegged at 15% below the average market price for Russian crude. This comes after a $60 cap set by the Group of Seven failed to bite.

In a united front, Britain has also pledged support, seeking to undercut Moscow's oil revenues, deemed essential for funding its war against Ukraine. However, the effectiveness of the new cap is under scrutiny, with traders doubting its ability to significantly curb Russian oil exports.

Moscow, through Kremlin spokesperson Dmitry Peskov, dismissed the EU's move as illegal but acknowledged its growing resilience to sanctions. The new package extends beyond oil to ban transactions involving Russia's Nord Stream pipelines and targets entities facilitating sanctions evasion.

(With inputs from agencies.)