The European Union is evaluating a temporary freeze on its price‑cap mechanism for Russian Urals crude oil amid the fourth month of the Middle East conflict.
The existing cap is set at $44.10 per barrel, calculated as 15 % below the average market price and is reviewed every six months; the next review is scheduled for later this summer.
A freeze would keep the cap at the current $44.10 level. Alternative proposals include: (i) suspending the automatic six‑month adjustments until the end of 2026, or (ii) capping any future increase at $60 per barrel to match the G7‑agreed level.
The measure forms part of the EU’s 21st sanctions package introduced after Russia’s full‑scale invasion of Ukraine in 2022. The EU intends to finalise and formally propose the new measures in early June, with member‑state envoys receiving briefings last week.
Under the cap, European firms are barred from providing services such as insurance and transportation for Russian oil sold above the threshold.
