FT reports stalemate in EU oil price ceiling discussion over Poland

EU talks on a ceiling on Russian oil prices have stalled over Poland's desire to set a lower cap than other countries see fit, the Financial Times reported, citing an unnamed European diplomat.

“This is the moment when we need to send clear signals of our unity to [Russian President] Vladimir Putin. The issue should be resolved long before December 5, ”the source said.

According to the publication, the European Commission insists on a maximum price level of $65 per barrel, but several EU member states, led by Poland, argue that such a ceiling is not effective because it is too close to the current market price of oil (now a barrel of Russian Urals costs about $66).

Earlier, Politico, citing sources in diplomatic circles, reported that Poland was in favor of capping Russian oil prices at $30. Warsaw wants the ceiling "closer to $20 a barrel", which would bring it closer to Russia's oil production costs and thus hurt the country more.

BLOOMBERG found outthat the EU has postponed negotiations on an oil price ceiling Politics

Bloomberg sources also reported about the "deadlock" in the EU negotiations on a price ceiling for Russian oil. According to the agency, Poland and the Baltic states rejected the proposed $65 limit as "too generous" towards Moscow.

President of Ukraine Volodymyr Zelensky thanked Warsaw and the Baltic countries for their position and said that talks about the $60-70 limit “are more like attempts to depict something rather than do something” and look like “giveaway”.

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The introduction of a price ceiling for Russian oil is provided for by the eighth package of sanctions. For crude oil, the restriction will come into effect on December 5, and for petroleum products on February 5, 2023. From the same dates, the embargo on the supply of oil and oil products from RUSSIA by sea will come into force.

Moscow has repeatedly stated that it will stop supplying energy resources to countries that impose any price ceilings. Deputy Prime Minister Alexander Novak said that Russia would redirect supplies to market-oriented partners or cut production.