EU-level for a new oil price limit: Slovai demands gas security!

EU-level for a new oil price limit: Slovai demands gas security!

In the past few weeks, the situation around the planned new sanctions against the Russian oil industry within the European Union has proven to be extremely complex. In Brussels, the 27 member states tirelessly discuss the 18th sanction package, but progress is anything but given. As Energy news , there are considerable differences in the suggested price lid for the Russian oil export, which leads to a standstill of the negotiations.

Currently the price lid for Russian oil is $ 60 per barrel. However, the European Commission has proposed to lower it to $ 45 in order to further restrict the financial means of Russia for the Ukraine war effort. But the Slovak Prime Minister Robert Fico has so far announced the use of a veto and calls for additional guarantees with regard to the gas supply by the EU before it gives its consent. from the AFP according to the Slovak concerns are not unfounded, Russian gas depends.

challenges and strategies

Another obstacle in the ongoing discussions are the concerns of countries such as Cyprus and Malta. These states have doubts about the possible negative effects of a reduced price lid on their merchant fleet, which also complicates the discussions. According to the Energy news , many EU countries struggle with the balance between economic interests and the need to counter the Russian aggression.

In order to counteract this, the Commission plans flexible adjustments to the price cover based on international market prices. This could help to counter the Member States, which are particularly dependent on Russian energy deliveries, while at the same time reducing the suspended income of the Russian government. Interestingly, international observers report that the Russian oil revenue has already dropped by 30 percent since the previous price cover was introduced.

The fleet of the "ghost tankers"

But while the EU is struggling for an agreement, some countries, especially in Central and Eastern Europe, have continued to increase their gas imports from Russia. In May 2024, imports rose to 2.5 billion cubic meters, an increase of 25% compared to the previous year. These developments could tighten the EU dilemma again, since many countries remain dependent on the cheaper Russian energy deliveries.

remains to be seen how the negotiations for the new price cover for Russian oil continue. The next session will show whether the EU members can overcome their differences or whether the needs of individual countries will further hinder progress.