Taking a major decision, the European Union (EU) has temporarily agreed to fix the price of Russian oil at $60 per barrel. The Western sanctions aim to restructure the global oil market to prevent price rises and to deprive Russian President Vladimir Putin of funds so he can use them to fund the war in Ukraine. In such a situation, this step of the EU is very important.
"Envoys have just reached an agreement on setting a price for Russian marine oil," the EU president said in a statement. There is no possibility of any obstruction. They were required to set a concessional price, which other countries would pay by Monday. An EU ban on Russian oil shipped by the sea comes into force on Monday and a ban on insurance for this supply also takes effect from then.
What would be the benefit of fixing the price?
The purpose of fixing the price is to prevent a sudden reduction in the world supply of Russian oil, as this could lead to a new surge in the prices of energy sources and fuel prices.