European Union countries have agreed to cap the price they will pay for Russian oil, bringing an end to days of arguments over how hard to hit Vladimir Putin’s fossil fuel revenues.
According to EU diplomats, a deal was agreed today. Poland had been holding out for a harsher cap on Russian oil prices.
Under the agreement, G7 countries will ban their insurance and shipping firms from facilitating Russian oil shipments to third countries if they are sold above $60 per barrel.
The system will be reviewed every two months, one of the diplomats said. The aim is for the cap to be set at a level which is at least 5 percent below the market price for Russian crude, the diplomat added.
The EU plan was drawn up following a G7 decision to cap the price paid for Russian oil.
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