Ukraine has proposed to the European Union to reduce the price of Russian oil to 30 dollars per barrel. This information was announced by Ukraine’s Minister of Foreign Affairs, Andriy Sybiha, during his visit to Brussels, where the meeting of the EU Foreign Affairs Council was held. Currently, the existing price cap stands at 60 dollars per barrel.
Sybiha expressed gratitude for the adoption of the 17th sanctions package and emphasized the importance of increasing pressure on Russia. He noted that Ukraine is not an obstacle to peace; on the contrary, Russian President Vladimir Putin continues his aggression, so diplomatic efforts must be intensified to contain the conflict and restore peace in Europe.
The minister also highlighted the need to strengthen pressure on the Russian banking system, particularly the Central Bank. In December 2022, the Group of Seven countries imposed restrictions on the price of Russian oil, banning its trade if the price exceeds 60 dollars per barrel, as well as limiting insurance and handling of shipments of Russian oil sold at higher prices.
Russia tried to circumvent these restrictions by using a “shadow fleet” of tankers without insurance from Western companies, and Urals crude oil was often sold above the established limit. However, in early April, the oil price fell below 60 dollars due to global economic concerns, including potential tariffs from the United States.
On May 20, the Council of the European Union adopted the 17th sanctions package against Russia, which includes restrictions on the activities of the Russian “shadow fleet.” This package is the largest in EU history and provides for a ban on port access and services for 342 vessels involved in the illegal transportation of Russian oil.
Additionally, the EU imposed individual sanctions on companies and individuals supporting the operation of the “shadow fleet,” including those from the UAE, Turkey, and Hong Kong. Major Russian oil companies, such as Surgutneftegas, which finance Russia’s military actions, were also targeted by sanctions.
The new sanctions package covers more than 45 Russian companies and individuals supplying weapons, drones, ammunition, and military equipment to the Russian army. The EU also expanded sanctions to Chinese, Belarusian, and Israeli companies assisting Russia in the military-industrial sector.
Thirty-one organizations that support Russia’s military complex have been added to the sanctions list, including companies from Serbia, the UAE, Turkey, Vietnam, and Uzbekistan that helped bypass export restrictions. Separate sanctions are also aimed at combating the plundering of cultural heritage in Crimea and the illegal exploitation of Ukraine’s agricultural resources. Overall, EU restrictions now apply to over 2,400 individuals and legal entities whose assets are frozen, and EU citizens and companies are prohibited from providing them with financial support.
