After Poland’s support, the European Union is likely to agree on a ceiling on the price of Russian oil.
The measure, which prohibits countries from paying more beyond $60 (€57; £48) per barrel, required the approval of every EU member state.
Poland confirmed its support on Friday after receiving assurances that the ceiling would remain 5% below the market rate.
In September, the G7 nations proposed a price ceiling designed to prevent Moscow from benefitting from oil exports while preventing a price surge.
Due to Poland’s backing for the idea, the EU will be able to implement a price cap by December 5 as planned.
It was stated that the EU sought to set the cap between $65-70, but Poland, Lithuania, and Estonia opposed this as too expensive.
Warsaw desired the value to be as low as possible and had held out while examining a method that would keep the cap below the market rate when the price of oil fluctuated.
Russian Urals crude traded at $64 a barrel on Friday.
The agreement on a price ceiling comes just days before an EU-wide ban on the importation of Russian crude oil by sea takes effect on 5 December.
The price ceiling, which is intended to affect global oil exports, is intended to complement this.
Countries adhering to the G7-led policy will only be allowed to acquire oil and petroleum products carried by the sea at or below the price ceiling.
The western supporters of Ukraine intend to restrict insurance coverage to tankers transporting Russian oil to nations that do not adhere to the price cap. This will impede Russia’s ability to sell oil over that price.
In September, G7 finance ministers stated that their plan to limit the price of Russian crude would affect Moscow’s oil revenues and its ability to “support its aggressive war.”
John Kirby, the spokesperson for the White House National Security Council, applauded the approval of an EU price restriction on Friday, stating that it will slow down the “war machine” of Russian President Vladimir Putin.
Russia criticized the idea, declaring that it would not supply countries with a price ceiling.
According to the International Energy Association, more than half of Russia’s oil exports went to Europe in 2021, before the war. The greatest importer was Germany, followed by the Netherlands and Poland.
However, since the conflict, EU nations have made frantic efforts to reduce their dependence. The United States has already banned Russian crude oil, while the United Kingdom wants to eliminate it by the end of the year.
Russia will undoubtedly feel the effects of the sanctions, but the damage will be mitigated by its decision to sell oil to other markets, such as India and China, which are currently the top purchasers of Russian crude oil.
