EU weighs cap on price paid for Russian oil as way to hit Kremlin revenues – FT
|As the European Union (EU) member states remain reluctant to announce an immediate embargo on Russian oil imports, they are contemplating imposing a ceiling on what they would pay for Russian oil as a way to hit Kremlin revenues, the Financial Times (FT) reported, citing one person familiar with the conversations.
Additional takeaways
“[The talks are about] finding the best way to deny [Putin] the revenue that he needs.”
“Another alternative would involve imposing an EU tariff on Russian oil, analysts say, forcing Russia to cut prices to stay competitive.”
Italy is among the member states to have spoken in favor of seeking to cap on the price of Russian energy. But Germany remains sceptical, noting, “trying to set a price would be difficult, and also in breach of contract.”
Market reaction
EUR/USD is consolidating the previous downside above 1.0700, awaiting a fresh catalyst for the next push lower.
At the time of writing, the pair is trading at 1.0727, adding 0.16% on the day.
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