Poland opposes EU proposal to impose price cap on Russian oil

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

The aim of the price cap, which will be imposed on December 5 and put forward by the G-7 including the US, is to reduce Moscow's budget for its invasion of Ukraine.

The EU is going to withdraw from the current ban on Russian oil, thereby softening some sanctions because of the introduction of a cap.

If we decide to ease the current system of sanctions and make it possible for Russia to export crude oil, and if we talk about cutting Russia's budget incomes, 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 clear 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 has been continuing its aggression against Ukraine. There will be another package of sanctions that will make up for the decision to soften the current ones. A 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.

The EU must have a majority of their members to make a decision on both the price cap and sanctions. Poland, which believes that the USD 65 price cap is too high, is supported by a group of EU members, including the Baltic States.

If the oil is sold below the agreed threshold, the price cap would 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.