EU governments complete approval of Russian oil price cap

Shafaq News / All European Union governments completed on Saturday the written approval of a $60 per barrel price cap on Russian seaborne oil, the European Commission said, paving the way for its publication in the EU's Official Journal and entry into force on Dec. 5.

The measure, an idea of the Group of Seven nations, comes on top of the EU's embargo on imports of Russian seaborne crude that also kicks in on Dec. 5, and is meant to allow oil-related services to third countries only for those cargoes below the cap.

"The G7 and all EU Member States have taken a decision that will hit Russia's revenues even harder and reduce its ability to wage war in Ukraine," EU Commission President Ursula von der Leyen said in a statement.

"It will also help us to stabilise global energy prices, benefiting countries across the world who are currently confronted with high oil prices," she said.

The price cap will prohibit G7 companies dealing with the insurance, re-insurance or financing of oil trade or to handle Russian crude oil cargoes to third countries unless the oil was sold at or below the $60 per barrel price cap.

(Reuters)