EU chief says oil price cap helps to stabilise global energy prices

3 December 2022, 12:13 PM
The EU limited the price of Russian oil (Photo:REUTERS/Dado Ruvic)

The EU limited the price of Russian oil (Photo:REUTERS/Dado Ruvic)

The EU, G7 and other countries' agreement on an oil price cap will help to stabilise global energy prices, President of the European Commission, Ursula von der Leyen, said in her speech on Dec. 2.

"The EU agreement on an oil price cap, coordinated with G7 and others, will reduce Russia’s revenues significantly," she said.

"It will help us stabilise global energy prices, benefitting emerging economies around the world," she added.

She also recalled the full import ban on Russian seaborn oil is starting from Dec. 5.

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"We need to ensure that emerging and developing countries continue to have access to some Russian crude oil at limited prices," von der Leyen said.

The European Union agreed on Dec. 2 to set $60 per barrel cap on Russian seaborne oil.

Poland and the Baltic countries have agreed for a mechanism which allows to review the oil price cap every two months.

If the oil market price falls to a level lower than $60, the cap will automatically be lowered to 5% below that price.

Russia has claimed it won't sell oil to the countries who agreed the cap. According to Bloomberg reports Russia has already lost up to 90% of its key oil market in northern EU countries.

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