Page 9 - EurOil Week 39 2022

EurOil POLICY EurOil

Eighth sanctions package will not

include oil price cap

EU THE EU will not include details of an oil price four referenda being held this week in occupied
cap in the upcoming eight package of sanctions regions of Ukraine on seceding to Russia.
Oil price cap sanctions as the details have not been worked out yet, UBN The European Commission will present
have been under reported on September 26. proposals for the eighth package this week and
discussion for months. Oil price cap sanctions have been under dis- EU leaders may approve it during a meeting in
cussion for months, where oil would be bought Prague on October 6-7.
from Russia at a fixed price. The scheme would Despite the difficult discussions several EU
be enforced by using secondary sanctions to members remain strongly in support of an oil
target anyone offering Russia maritime services price cap. Poland, Ireland, Latvia, Lithuania and
such as tankers or insurance. The plan is to set Estonia have all demanded increased pressure
the cap at a level where Russia would be willing on Russia in the new package of sanctions.
to continue to export oil and prevent shortages, Poland, Ireland and three Baltic countries
but low enough so that the Kremlin's most want the EU to expand its sanctions on Russian
important source of revenues is heavily reduced. energy, including a ban on liquefied natural gas
The Kremlin has responded to the proposed (LNG) and restrictions on co-operation in the
scheme, saying it will simply cut off supplies of field of nuclear energy, Bloomberg reports.
oil to any country that attempts to participate in These proposals also exclude a larger number
the scheme. of Russian banks from the SWIFT international
The idea of an oil price cap is very popular, payment system, starting with Gazprombank
but it is proving to be very difficult to agree on that currently handles the EU payments for gas
the details in practice. imports from Russia.
There will probably be no limit on the prices The five EU member states above have also
of Russian oil in the eighth package, according to proposed banning insurance services and tight-
Radio Svoboda, because the G7 is still working ening restrictions on crypto transactions. These
out the details for capping them. countries are also proposing to ban the use
However, the next round of sanctions will of products from Russian cybersecurity firm
contain new measures on chemicals, machinery, Kaspersky Lab in the EU and to strengthen exist-
steel products and individuals involved in the ing restrictions on technology exports. ™

Week 39 30•September•2022 www. NEWSBASE .com P9