The EU accepted the award after Poland gave its backing, paving the way for formal approval over the weekend. The G7 and Australia said the price cap would come into effect on December 5 or very soon.
The Group of Seven (G7) countries and Australia said on Friday they had agreed to a $60-a-barrel price cap for Russian maritime crude after members of the European Union overcame the resistance from Poland and reached a political agreement earlier today.
The EU accepted the award after Poland gave its backing, paving the way for formal approval over the weekend. The G7 and Australia said the price cap would come into effect on December 5 or very soon.
The nations said they expect any price revisions to include some form of grandfathering to allow for compliant transactions entered into before the change. “The Price Cap Coalition may also consider other measures to ensure the effectiveness of the price cap,” the statement said. No details were immediately available on what further steps could be taken.
Warsaw had resisted the proposed level as it examined an adjustment mechanism to keep the cap below the market price. It had pushed in EU negotiations for the cap to be as low as possible to squeeze revenues to Russia and limit Moscow’s ability to finance its war in Ukraine.
On Friday, Polish Ambassador to the EU Andrzej Santos told reporters that Poland had backed the EU deal, which included a mechanism to keep the oil price cap at least 5% below the market rate. U.S. officials said the agreement was unprecedented and demonstrated the coalition’s resolve opposing Russia’s war.
A spokesperson for the Czech Republic, which holds the rotating EU presidency and oversees EU countries’ negotiations, said it had launched the written procedure for all 27 EU countries to greenlight the deal following Poland’s approval.