Overview

• The draft mechanism would replace the static $60 per barrel ceiling with a floating cap tied to three-month market averages and set roughly 15% below global benchmark prices.
• It requires unanimous approval from all 27 EU member states and is slated for debate later this month as part of the bloc’s 18th sanctions package.
• Several maritime nations, including Greece, Cyprus and Malta, have raised concerns that tighter caps could erode their shipping and insurance businesses.
• The United States and Japan have resisted lowering the cap, prompting Brussels to advance the proposal unilaterally.
• The overhaul aims to restore sanctions pressure on Moscow’s oil earnings after Russia bypassed the original cap via shadow fleets and non-aligned buyers.