On Monday, July 14, the European Union is expected to reach an agreement on the 18th package of sanctions against Russia, Reuters reports, citing diplomatic sources. A key element of the new package is a change in the mechanism for setting the price cap for Russian oil.
According to the proposal, the cap price will be set dynamically. It will be 15% below the average market price for the past six months. This is a compromise option compared to the initial proposal of the European Commission, which insisted on a calculation based on a three-month period.
Initially, the ceiling will be around $47 per barrel, which is significantly below the current level of $60.
At the same time, Slovakia has not yet given full support to the package. Bratislava insists on a gradual withdrawal from Russian energy supplies, especially natural gas, and expects additional commitments from the European Commission.
The final decision will be made during the meeting of EU foreign ministers in Brussels.
Meanwhile, Bloomberg has revealed details about the methodology for the new “floating” ceiling. It will be calculated as 15% below the average price for the past 10 weeks. This further confirms expectations that the level will be reduced to around $50 per barrel.
Slovak Prime Minister Robert Fico recently reiterated that his country will not accept sanctions that threaten its energy security without clear guarantees in return.