The European Union has entered the last stretch of negotiations to reach a deal on a new round of sanctions against Moscow, as countries scramble to avoid a politically disastrous update of the price cap on Russian oil.
Under the rules, the cap, currently set at $44.10 per barrel, must be automatically adjusted every six months to remain at 15% below the average market price.
The next review is scheduled for 15 July.
Since Russian oil soared in the aftermath of the closure of the Strait of Hormuz, the revision is certain to push the cap much higher, likely hitting $58 per barrel, which would provide the Kremlin with breathing space at a time when its economy is under growing strain and Ukraine enjoys momentum on the battlefield.
The European Commission considers this scenario unpalatable and has proposed to delay the review until January next year to keep the cap at $44.10 per barrel.
