EU and G7 Consider Replacing Price Cap on Russian Oil with Maritime Ban
The Group of Seven nations and the European Union are considering replacing a price cap on Russian oil exports with a complete ban on maritime services, aiming to curb the revenue that fuels Russia’s war in Ukraine. According to six sources familiar with the matter, cited by Reuters, this move would significantly impact Russia’s ability to export its oil.
The current price cap has been in place since 2022, and while it has had some effect on Russian oil exports, a complete ban on maritime services would be a more drastic measure. This is because Russia relies heavily on Western tankers to transport its oil to countries such as India and China. A ban would end this trade, which is largely carried out by fleets of EU maritime countries, including Greece, Cyprus, and Malta.
Shadow Fleet Would Need Expansion
The remaining two-thirds of Russian oil exports are carried by the shadow fleet, which Russia would need to expand if the G7 and EU impose a ban on maritime services. This could be a challenge for Russia, as it would require significant investments in new tankers and shipping infrastructure.
Ban Could Be Part of Next Sanctions Package
The ban could be part of the EU’s next sanctions package against Russia, planned for early 2026. All 27 EU countries would like to approve the ban together with a broader G7 agreement before including it in the package. This suggests that the move is being coordinated at the highest levels and is likely to have significant implications for Russia.
Pressure Tactics May Influence US Decision
According to four sources, any final US decision on the matter would depend on the pressure tactics chosen by President Donald Trump’s administration amid ongoing peace talks between Ukraine and Russia. This highlights the complex diplomatic dynamics at play in this situation.
Background: General Licence Issued for Lukoil Gas Stations
On 4 December, the Trump administration allowed transactions with Lukoil gas stations outside Russia by issuing a general licence valid until 29 April 2026. This move was seen as a sign of flexibility and willingness to engage with Russian entities, despite the ongoing conflict in Ukraine.
In conclusion, the consideration of a maritime ban on Russian oil exports is a significant development that could have far-reaching implications for Russia’s ability to export its oil. As the situation continues to unfold, it will be important to monitor developments closely and assess their impact on the global energy market.
Original Article: EU and G7 consider replacing price cap on Russian oil with maritime ban, Reuters says — Ukrainska Pravda