© Reuters. FILE PHOTO: Ukraine’s President Volodymyr Zelenskiy visits Kherson, Ukraine November 14, 2022. Ukrainian Presidential Press Service/Handout via REUTERS/File Photo
(Reuters) – The price for Russian seaborne oil should be capped at between $30 and $40 per barrel, lower than the level that Group of Seven nations have proposed, Ukrainian President Volodymyr Zelenskiy said on Saturday.
European Union governments, seeking to curb Moscow’s ability to fund the Ukraine war without causing an oil supply shock, are split over a G7 push that the cap be set at $65 to $70 per barrel. It is due to enter into force on Dec. 5.
“The limit that is being considered today – about $60 – I think this is an artificial limit,” said Zelenskiy, who has consistently pushed allies to impose tougher sanctions of all types against Russia.
“We would like the sanctions to be very effective in this fight, so that the limit is at the level of $30-$40, so Russia feels them (the sanctions),” he told a news conference.
The idea of the cap is to prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price set by the G7 and its allies.
Poland, Estonia and Lithuania are pushing for a much lower cap than $65-70 per barrel while Greece, Cyprus and Malta want a higher cap.