EU weighs cap on price paid for Russian oil as way to hit Kremlin revenues

EU weighs cap on price paid for Russian oil as way to hit Kremlin revenues

EU member states are looking at whether to impose a ceiling on what they would pay for Russian oil as a way to hit Kremlin revenues, as they shy away from agreeing an immediate blockade on Moscow’s crude exports.

An oil price cap is one of a number of proposals being discussed as EU ambassadors prepare for talks in coming days about more sanctions on Moscow — the sixth such package since Vladimir Putin ordered the invasion of Ukraine two months ago.

“[The talks are about] finding the best way to deny [Putin] the revenue that he needs,” said one person familiar with the conversations.

Another alternative would involve imposing an EU tariff on Russian oil, analysts say, forcing Russia to cut prices to stay competitive.

EU member states are divided over how aggressively to move against Russian energy, which is at the heart of the country’s economy. Russia provides more than a quarter of EU crude oil imports and member states have paid Moscow more than €13bn for oil since the war with Ukraine started, according toCREA, a research organisation.

Germany and other countries have ruled out an overnight ban on Russian oil imports because it would harm their own industry, while EU officials