Poland opposes EU proposal to impose price cap on Russian oil

Poland will oppose a European Commission proposal to impose a price cap of USD 65 on a barrel of Russian oil, because it believes that the proposed level is too high, according to a PAP source.

The price cap, which is set to be imposed on December 5 and put forward by the G 7, is designed to reduce Moscow's budget for funding its invasion of Ukraine.

The EU will withdraw from the current ban on Russian oil, thereby softening some sanctions, as a result of the introduction of a cap.

If we decide to reduce Russia's budget incomes and to make it possible for Russia to export crude oil, then the price cap must be below a market price, PAP was told by a diplomat.

According to the diplomat, Poland wants the EU to introduce a mechanism that adjusts the price of Russian oil to market price fluctuations, and believes that the price cap should be accompanied by a package of sanctions.

We need to send a clear signal to Russia, which is continuing its aggression against Ukraine. There will be a package of sanctions that will make up for the decision to soften the current ones. Another Polish diplomat in Brussels told PAP: Working-level talks continue. We still believe that the price cap must be accompanied by a 9th package of EU sanctions on Russia.

Poland has been waiting for such a proposal, the diplomat said.

A decision on the price cap and sanctions requires unanimity from EU members. Poland, which believes that the USD 65 price cap is too high, is supported by a group of EU members, including the Baltic States.

The price cap would also ban companies from providing shipping and services, such as insurance, brokerage and financial assistance, which are needed to transport Russian oil anywhere in the world if the oil is sold below the agreed threshold.