EU seeks to cut Russian oil price cap to $45 to pressure Kremlin

In a significant move, the European Union has proposed a new sanctions package aimed at Russia, driven by the ongoing war in Ukraine. This marks the EU's 18th package of sanctions since Russia's invasion in 2022, with new measures highlighting the urgent need to curtail Russia's oil revenue, which is crucial for funding the war. The proposal includes a reduction of the price cap on Russian oil exports from $60 to $45 per barrel, in response to the declining global oil prices. The European Commission, led by President Ursula von der Leyen, stated that Russia's aggressive actions indicate a lack of interest in peace talks, necessitating stronger sanctions. The EU aims to secure a unanimous agreement from its 27 member states to implement these sanctions. Moreover, the measures also seek to prevent EU operators from engaging with Russian banks, especially those found circumventing existing sanctions. In addition, new restrictions will target the Nord Stream pipelines to ensure that Russia cannot generate revenue from these projects in the future. This proposed sanctions package is part of a broader strategy to bolster the EU's position and bring Russia back to the negotiating table for peace talks with Ukraine, reflecting the bloc's commitment to ending the conflict. The sanctions are designed to limit Russia's financial resources and ultimately force a change in its military strategy toward Ukraine, emphasizing peace and the necessity of negotiations.