Nov 26 (Reuters) – The price of Russian offshore oil should be capped at $30-$40 a barrel, lower than the level proposed by the Group of Seven countries, Ukrainian President Volodymyr Zelenskiy said on Saturday.
European Union governments, seeking to limit Moscow’s ability to fund the war in Ukraine without causing an oil shock, are split over a G7 push for the cap to be set at $65-$70 a barrel. It is due to come into force on December 5.
“The limit being considered today – around $60 – I think is an artificial limit,” said Zelenskiy, who has consistently pushed allies to impose tougher sanctions of all kinds against Russia.
“We would like the sanctions to be very effective in this fight, so that the limit is at the level of 30 to 40 dollars, so that Russia feels them (the sanctions),” he told a conference of hurry.
The idea of the cap is to prohibit shipping, insurance and reinsurance companies from transporting shipments of Russian crude around the world unless it is sold at a price lower than the price set by the G7 and his allies.
Poland, Estonia and Lithuania are pushing for a cap well below $65-70 a barrel while Greece, Cyprus and Malta want a higher cap.
Reporting by Dan Peleschuk; Written by David Ljunggren; Editing by Daniel Wallis
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