The European Union should reduce the maximum price of Russian crude and also cap the price of the country’s liquefied natural gas, according to Estonian Foreign Minister Urmas Reinsalu.
The combined measures will create a “holistic approach to pressure Russia” in the coming weeks, he told reporters in Brussels.
His comments show that, nearly a year after Russia’s invasion of Ukraine, officials are still considering measures to punish Moscow in an effort to end the conflict. EU sanctions on Russian crude went into effect in December. Similar measures on Russian oil products came into effect earlier this month.
The Baltic countries and Poland successfully pushed for a $60 per barrel cap on Russian crude. The group also secured EU commitments to review the cap every two months and to set future caps at least 5% below average market rates.
Under the price caps, third-country buyers of Russian barrels must adhere to the ceiling if they want to use Western shipping and insurance services.
The $60 cap is “too high” and should be lowered to $30, Reinsalu said. “Russia gets billions from this business.”
The average price of Urals crude, Russia’s key export blend, was $46.82 a barrel between Jan. 15 and Feb. 14, according to the country’s finance ministry.
Although Russia has cut pipeline gas flows to Europe to a fraction of their level a year ago, the country’s LNG imports have increased, with France, Belgium and Spain the main buyers. Strong imports from Russia’s Yamal LNG project have also continued.
Only a handful of nations, the Baltic states and the UK, have banned Russian LNG. The German government has tried to reduce LNG imports from Russia.
