European union looks set to approve a cap on the price of russian oil after poland gave its backing. on friday, poland announced its support for the proposal put forward by the g7 group of nations in september, which aims to stop moscow profiting from oil exports while avoiding a price spike. the plan stops countries paying more than $60 (â¬57; â£48) a barrel and poland had wanted the value to be as low as possible.
the cap was proposed in september and poland’s support means the eu can keep to its plan of having the price cap in place by 5 december. on friday, russian urals crude was trading at $64 a barrel and the introduction of a cap on russian oil prices means countries that sign up to the policy will only be permitted to purchase oil and petroleum products transported via sea that are sold at or below the price cap.
the g7 finance ministers said their plan to limit the price of russian crude would reduce moscow’s oil revenues and its ability to “fund its war of aggression”. poland had held out while it examined an adjustment mechanism which would keep the cap below the market rate as the price of oil changed and russia denounced the scheme, saying it would not supply those countries which enforced a price cap. the plan needed the agreement of all eu states in order to be implemented.