Nordic-Baltic Call for Stricter Russian Oil Price Cap

Nordic and Baltic nations are pressing the European Union to reinforce the G7's oil price cap on Russian exports. Currently set at $60 per barrel, the cap is deemed ineffective as Urals oil is being sold at prices ranging from $64 to $84 per barrel, primarily to buyers in China and India. The Centre for Research on Energy and Clean Air (CREA) suggests that reducing the cap to $30 per barrel could have significantly impacted Russia's revenue, potentially slashing oil export income by 25% and leading to losses estimated at €76 billion, given Russia's production costs are around $15 per barrel.

The call for stricter measures comes amidst heightened geopolitical tensions and new US sanctions that threaten to disrupt Russia's oil supply chain. These sanctions target Russia's shadow fleet and major oil companies, affecting global oil markets and pushing prices to a multi-month high. As Russia's oil and gas revenues are crucial for funding its activities, including the conflict in Ukraine, the Nordic and Baltic states hope that a tighter cap will curtail Moscow's financial resources without destabilizing the market.