Iran Crisis Forces EU Rethink on Russian Oil Caps | World Business Watch | WION

Added: 2026-06-02

[00:00:00]Moving on, now, the European Union is now considering putting its own sanctions mechanism on pause. And the reason is the surge in oil prices due to the war in West Asia.

[00:00:10]According to a Bloomberg report, Brussels is weighing a temporary freeze on its price cap on Russian oil.

[00:00:17]The EU adopted a dynamic mechanism last year to ensure the price cap is automatically set every 6 months at 15% below the average market rate for Russian Urals crude.

[00:00:30]The current threshold stands at 44.10 dollars per barrel and is due for review in the month of July.

[00:00:38]Brussels eyes overriding the automatic formula, which would otherwise let the ceiling jump from 44.10 dollars to at least 65 dollars a barrel in July.

[00:00:48]That would hand Moscow a significant financial windfall, exactly what the cap was designed to prevent.

[00:00:56]The proposed measure is part of the EU's 21st sanctions package against Russia, set to be discussed in early June. The US has already issued a Russian oil sanctions waiver to ease pressure on markets, allowing vulnerable countries to buy Russian oil already at sea.

[00:01:13]The EU now faces a clear choice. Freeze the cap and protect markets and supply or let it rise as per the current formula and fill the Kremlin's coffers.

[00:01:25]>> [music]