**Ukraine Seeks Lower Price Cap on Russian Oil**
As the conflict between Russia and Ukraine continues, Ukrainian Foreign Minister Andriy Sybiha has called for a reduction in the price cap on Russian seaborne oil. Currently set at $60 per barrel by the Group of Seven (G7) advanced economies, Sybiha believes that this cap should be lowered to $30 per barrel.
This proposal comes as the European Union and Britain announced new sanctions on Russia, targeting its “shadow fleet” of oil tankers and financial companies that have helped Moscow avoid other sanctions. The EU has also proposed a lower price cap of $50 per barrel, which is higher than Ukraine’s suggested figure but still a significant reduction from the current rate.
**Why a Lower Price Cap Matters**
The oil price cap was imposed to reduce Russia’s ability to profit from oil sales and thus limit its resources for the war in Ukraine. By lowering this cap, Ukraine hopes to further weaken Russia’s economy and put more pressure on Moscow to negotiate a ceasefire.
According to Ukrainian President Volodymyr Zelenskiy, Russian oil infrastructure, banks, and financial schemes are particularly vulnerable to sanctions. He believes that the more pressure applied on these areas, the greater the incentive for Russia to pursue peace.
**Global Implications**
The proposed changes to the oil price cap come as global oil prices have fallen this year. While this makes Russian oil exports less profitable, it also increases the urgency for Moscow to find new revenue streams. The impact of a lower price cap on Russian oil would be felt not just in Ukraine but also globally, particularly among countries reliant on energy imports.
In this context, it’s worth noting that U.S. President Donald Trump has spoken with Russian President Vladimir Putin without securing a ceasefire agreement. This highlights the ongoing diplomatic challenges and the need for sustained pressure on Russia to achieve peace in Ukraine.
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