The European Union is proposing to lower the price cap on Russian oil to $45 per barrel, down from the current $60, in a bid to tighten energy and financial sanctions against Russia’s ability to wage war. The move aims to cut one-third of Russia’s government revenues, which come mainly from oil exports.
European Commission President Ursula von der Leyen said that lowering the cap would “restore its effectiveness” and urge Russia to engage in negotiations towards a just and lasting peace. She expressed confidence that the G7 would adopt the proposal, despite uncertainty about US president Donald Trump’s stance on sanctions against Vladimir Putin.
As part of the EU’s 18th round of sanctions against Russia, von der Leyen also proposed tightening measures against Russia’s “shadow fleet”, hundreds of old and poorly maintained tankers that enable the Kremlin to export oil at a price above the western-imposed cap. The commission is targeting sanctions against the captain of one such tanker, an Indian national, in an effort to discourage others from crewing these vessels.
The EU executive also wants to impose restrictions on doing business with companies involved in the Nord Stream 1 and Nord Stream 2 pipelines, as well as cutting off 22 banks from the Swift financial messaging system. European leaders have vowed to impose “massive” sanctions on Russia if Putin does not agree to a 30-day ceasefire within days.
The proposals would require unanimous approval by all 27 EU member states. The move is seen as part of a broader effort to ramp up pressure on Russia and push it towards negotiations towards a peaceful resolution.
Source: https://www.theguardian.com/business/2025/jun/10/eu-price-cap-russian-oil-sanctions-nord-stream