Price ceiling for Russian oil, approved on July 18 as part of the 18th package of EU anti-Russian sanctions, will be reviewed at least twice a year depending on changes in world oil prices.

As reported Bloomberg, the price of Russian oil will be determined by the formula: world oil prices minus 15%. It is not specified which type of oil is being used.

The new sanctions package sets a price threshold for Russian black gold at $47.6 per barrel instead of the previous figure of $60.

Initially, the plan was to lower the"price ceiling" from $60 to $45 per barrel. However, opposition to this decision from Greece, Cyprus, and Malta forced European officials to seek a compromise and introduce a dynamic"price ceiling."

Criticism of new oil restrictions

As noted by Razom We Stand, despite the fact that the"price ceiling" has been reduced, Russia still has loopholes that will allow it to continue to generate profits that will ultimately be directed to war.

"During periods when world market oil prices fell to $42, the price cap remained at $60, allowing Russia to earn significant profits from exports. The reduced dynamic oil price cap, which starts at $47.6 per barrel and is adjusted every 6 months, leaves this loophole open," the organization noted.

In addition, according to experts, along with the introduction of a price limit, it is necessary to strengthen control over the implementation of sanctions.

"Reducing the oil price cap without strengthening enforcement is not a strategy and creates the risk that the EU will allow sanctions to become symbolic rather than strategic," says Svitlana Romanko, founder and executive director of Razom We Stand.

According to the organization's experts, the upper limit of prices for Russian oil should be lowered to $20-25 per barrel.

EU sanctions against Russia

As UNIAN reported, on July 18, ambassadors EU approves 18th package of anti-Russian sanctions. The new restrictions add another 105 ships of the Russian"shadow fleet" to the "black list". It is also planned to restrict the access of Russian banks to financing and sanctioning the Nord Stream pipeline. Chinese banks that do not comply with EU restrictions will also be subject to sanctions.

In addition, the EU is imposing a ban on the import of petroleum products produced from Russian oil originating from any third country, except Canada, Norway, Switzerland, the United Kingdom and the United States.

The current EU sanctions package has had a difficult path to adoption. After the European Commission presented a new sanctions proposal in June last year and discussed it, it was blocked by both Slovakia, demanding"guarantees" in connection with EU restrictions against Russian energy carriers, as well as potential lawsuits from the Russian Federation and Greece, Cyprus, and Malta due to the price cap.

On July 17, Slovak Prime Minister Robert Fico lifted the warning. It was eventually possible to convince Greece, Cyprus, and Malta, which did not support lowering the price ceiling for Russian oil.