Poland, Estonia, and Lithuania proposed to lower the EU’s cap on the price of Russian oil to $51.45 per barrel, which is 14.3% less than the current ceiling of $60 per barrel, tell Bloomberg’s sources. The three countries estimate that the higher level equates to a 5% markdown from current market prices.

The International Energy Agency assessed that Russia earned $13 billion from the export of oil and oil-related goods in January. The authorities of the three European nations estimated that the planned decrease in the maximum price would result in a reduction of $650 million in their value.

The European Union, the G7 nations, and Australia set a price cap on Russian crude supplies by sea at $ 60 per barrel on December 5, 2022.

The coalition nations agreed that when implementing restrictions, the cap would be reviewed every two months, taking into consideration market changes, and set at a minimum of 5% below the average market price, as determined using data from the International Energy Agency.

source: bloomberg.com