EU Set to Recommend $50 Per Barrel Price Ceiling on Russian Oil for G7 Consideration

BRUSSELS, May 19 (Reuters) – This week, the EU is set to suggest a reduction in the $60 per barrel price cap on Russian oil during discussions with G7 finance ministers, according to European Economic Commissioner Valdis Dombrovskis. While he didn’t specify an exact figure for the proposed cap, insiders indicate that a target of $50 per barrel is highly likely.

When asked if he would present this proposal at the upcoming G7 meeting in Canada, Dombrovskis confirmed with a simple “Yes.” He added that this initiative aligns with discussions surrounding the 18th sanctions package and expressed hope for interest from other G7 nations.

The G7 comprises major economies: the United States, Canada, Britain, France, Germany, Italy, and Japan. Additionally participating are representatives from the European Commission and eurozone finance ministers.

The original price cap was established in December 2022 to restrict trade involving Russian crude oil transported by tankers when prices exceed $60 per barrel. It also barred shipping and insurance companies from engaging with Russian oil unless it fell below this threshold. the goal? to cut off funding for Russia’s military actions in Ukraine while avoiding drastic disruptions to global oil supplies.

However,Russia has found ways around these restrictions by utilizing a “shadow fleet” of tankers not insured by Western firms. As a result,Russian Urals crude has often traded above this limit.Interestingly enough though, prices dipped below $60 earlier this April due to rising concerns about economic growth following U.S. tariff announcements impacting global markets.

In light of these developments and ongoing geopolitical tensions affecting energy markets worldwide—think about how countries like Venezuela or Iran have navigated similar sanctions—this conversation among G7 members could lead to significant shifts in international trade dynamics moving forward.

(Reporting by Jan Strupczewski; Editing by Louise heavens and Emelia Sithole-matarise)
(c) Copyright Thomson Reuters 2025.

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