MOSCOW: The European Union (EU) is considering temporarily freezing price caps on Russian crude oil due to ongoing conflicts in West Asia, Sputnik/RIA Novosti reported citing a Bloomberg report on Sunday.
The freeze measure is reportedly expected to keep oil prices at current levels.
Other options being considered include postponing dynamic and automatic increases in fuel prices until the end of this year, as well as capping prices at US$60 per barrel, which is the maximum level set by the G7 Group, a source familiar with the matter told Bloomberg.
The next review of the oil price cap in July will most likely see the cap level increase to at least US$65.
The news agency reported that the EU’s 21st sanctions package against Russia is likely to introduce new sanctions targeting banking institutions, oil traders, oil refineries and crypto operators in third countries.
Sanctions may also be imposed on about 20 tankers allegedly linked to Russia.
In December 2022, the G7, Australia and the EU introduced a US$60 price cap on crude oil via Russian sea routes, and banned the shipping and insurance of oil sold above that price.
The EU, along with the United Kingdom (UK), Switzerland, Canada and New Zealand, later lowered the price cap to US$47.60 in September 2025.
Russian President Vladimir Putin issued a decree in December 2022 prohibiting the sale of Russian oil and petroleum products to foreign entities if their contracts, either directly or indirectly, contain price ceiling fixing.
The ban has since been extended until June 30, 2026.
Russia has repeatedly insisted that the country is capable of handling the pressure of the sanctions, while accusing the West of lacking the courage to admit the failure of its sanctions policy.
Some Western officials have also criticized the sanctions as being ineffective.
Putin previously said the policy of containing and weakening Russia was a long-term strategy of the West, while the sanctions imposed had dealt a severe blow to the entire global economy.
— BERNAMA-SPUTNIK/RIA NOVOSTI
