European Commission urges US to enforce G7 price cap on Russian oil exports
The European Commission has demanded that the United States strictly adhere to G7 sanctions regarding Russian energy exports. European Commissioner for Economy Valdis Dombrovskis stated that Washington must stick to the established price cap, despite supply shortages caused by the conflict in the Middle East.
Brent crude oil prices reached a four-year high of $119 per barrel due to supply disruptions in the Persian Gulf. Dombrovskis emphasized the importance of maintaining a price gap and proposed a complete ban on Russian crude oil shipments by sea. The EC believes that easing restrictions undermines support for Kyiv and contradicts the US goal of deterring Iran.
According to CNBC, the current volatility in the energy market is making Russia a beneficiary of the war between the US, Israel, and Iran. Rising prices are directly increasing the Russian budget's revenues, offsetting the effects of Western sanctions. Brussels is particularly concerned about Washington's recent decision to grant India a 30-day license to purchase oil from Russia.
The US Treasury had previously explained that temporary exemptions were necessary to stabilize the global market and prevent a worldwide crisis. However, the EC insists on prioritizing sanctions pressure. Dombrovskis described retreating from agreed-upon rules as "counterproductive," noting that additional revenues enable Moscow to increase funding for its military operations.