The European Union will not introduce new price restrictions on Russian oil exports given the risks of a sharp jump in prices amid the escalating situation in the Middle East.

Source : European Pravda, citing Politico

Details : The proposed measure, which would have lowered the maximum price for Russian oil from $60 to $45 per barrel, was to be discussed in Brussels by the foreign ministers of EU countries.

However, two diplomats said that the escalation of the conflict between Israel and Iran had made this plan unrealistic.

"The idea of lowering the price cap is probably not going to fly because of the international situation in the Middle East and the volatility. At the G7 meeting this week, it was agreed by all the countries that they would prefer not to take the decision right now. The prices were quite close to the cap, but now the prices are going up and down, the situation is too volatile for the moment," one of the publication's sources said.

As the publication recalled, at the G7 summit in Canada, European Commission President Ursula von der Leyen acknowledged that the current measures have "had little effect – but in the last [few] days, we have seen that the oil price has risen [and] the cap in place does serve its function ... So for the moment, there's little pressure on lowering the oil price cap."

It should be noted that oil prices have risen sharply in recent days after Israel and Iran began striking each other.

Background :

• On 16 June, European Pravda wrote that the EU would not independently lower the maximum price for Russian oil from $60 to $45 per barrel, as this initiative is unlikely to be supported by the G7.
• Ukraine has called on the European Union to reduce the maximum price for Russian oil to US$30 per barrel.
• US President Donald Trump previously stated that he aims to bring down global oil prices, which, in his view, would help end Russia’s full-scale invasion of Ukraine.

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