Poland, Estonia, Lithuania demand tighter price cap on Russian oil

Poland, Estonia, and Lithuania are pushing for a lowering of the price cap on Russian oil in a bid to further limit the financing of the Kremlin's war machine.

The three countries propose that the ceiling, set at USD 60 per barrel in December, be cut to no more than USD 51.45.

The issue of reviewing the Russian oil price cap is to be discussed on Wednesday at a meeting member states' ambassadors to the EU, PAP has learnt.

The price ceiling for Russian oil is intended to limit Moscow's income from exports but as Poland, Estonia and Lithuania indicate, Russia was able to adapt to it. While Russian oil exports to the EU fell to around 600,000 barrels a day in January from 1 million barrels a day in December, Russian companies were able to export more to other markets such as China, India and Turkey.

The three countries indicate that the setting of the price cap on Russian oil in December did not cause disturbances on the global oil market. World oil demand is currently low, as are oil prices.

They argue that Russia still earns millions of dollars a day despite its loss of revenues from the sale of oil. Ships owned or insured in the EU and the UK carry EUR 310 million worth of Russian fossil fuels a day, which is 65 percent of the total value of Russian fossil fuel exports by sea.

According to International Energy Agency data, Russia still earns about USD 135 million a day from oil exports.

Therefore, Poland, Estonia and Lithuania wrote in the document seen by PAP, that these data represent an argument for lowering the price cap on Russian oil in order to reduce revenues to the Russian budget.