EU wants to hit Russia with a new price cap on diesel

Zurich, Brussels The first blow to the Kremlin’s war chest came in December. At the end of 2022, the EU stopped imports of crude oil from Russia and at the same time implemented a global price cap together with the USA and the other G7 countries. Since then, Russian oil has traded at significantly lower prices than crude oil from other sources.

“There was a lot of skepticism as to whether such a price cap could work,” said Maria Shagina, an energy expert at the International Institute for Strategic Studies (IISS). “But it works.”

Now the next blow is prepared. The EU countries are in the final phase of negotiations on the introduction of price caps on diesel and heavy fuel oil. A meeting of representatives of the member states on Tuesday did not bring any breakthrough. It is clear, however, that the price cap should come into force on February 5th.