The European Union extends negotiations to set a ceiling for Russian oil prices

Representatives of the European Union member states extended their negotiations on imposing a strict price cap on Russian oil exports, which indicates the possibility of divisions among the member states on this issue.

Bloomberg news agency referred to Poland's rejection yesterday of the proposal of the European Commission, the executive arm of the Union, to set a ceiling for the price of Russian oil at $65 per barrel, as it is considered very flexible for Moscow.

Greece, a major player in the oil transportation industry, also refuses to cap prices below $70 a barrel.

European diplomats said that negotiations on the proposal of the Group of Seven major industrialized countries on the price ceiling will resume this evening, Thursday, while an agreement can be reached that guarantees the continued flow of Russian oil to the markets while reducing the Russian state's revenues from export revenues.

On the other hand, critics of the Commission's proposal say that the ceiling is not less than the prices at which Russia currently sells its crude oil, as it sells at reduced prices to attract customers in light of the European sanctions imposed on Moscow because of the war on Ukraine since last February.

For its part, Russia hinted at the possibility of changing its position on the proposed price ceiling, after it had previously stated that it would not sell crude oil to countries that adhere to the price ceiling.

But the situation has changed today.

Kremlin spokesman Dmitry Peskov said: "In light of these numbers, we will analyze all this before determining our position. It is difficult to predict the impact of this decision on the oil market so far."

Peskov added, in response to a question about how Russia would respond to the price ceiling, in the event that it was imposed at prices at or above market levels: “We are now working from the position of President (Russian Vladimir) Putin, that we will not supply oil and gas to countries that impose Put a price cap or join that, but given these figures, we must analyze all this before formulating our position."

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