The member states of the European Union have been trying for several weeks to reach a political agreement that would introduce a cap on the price of Russian oil. Discussions intensified after Russian President Vladimir Putin announced a "partial mobilization" of troops, Bloomberg reports with reference to sources.
According to the sources, the oil price cap is likely to be included in the new package of sanctions proposed by the European Commission. Such a move would align the EU with US efforts to prevent a sharp rise in the cost of crude oil and hit Moscow's revenues.
But despite efforts by the European Commission, the EU executive and some member states, the plan faces many obstacles, the sources said. They added that the decision on sanctions requires unanimity, which is difficult to achieve due to the different energy needs of the EU member states.
Representatives of member states will meet with the European Commission at the weekend to discuss new sanctions, which, in addition to restrictions on oil, may include additional restrictive measures against certain individuals and sectors, such as technology and luxury goods, the publication's interlocutors said.
Many details still need to be discussed, including setting a ceiling price. It also remains unclear how such a restriction would be imposed alongside the EU embargo on Russian oil and a ban on services needed to transport it, agreed earlier this year. In any case, there is some urgency, the sources said, as the price ceiling will need to be in place before the EU measures come into effect on December 5.
According to Bloomberg interlocutors, representatives of the governments of EU member states in Brussels will try to reach a preliminary agreement on the price limit before an informal meeting of EU leaders in Prague on October 6. One of the biggest problems could be Hungary, which has repeatedly hinted at the importance of unanimous decisions in the EU.
