Overview

• The European Commission’s draft sets the cap at 15% below the average global crude price over the past three months with quarterly adjustments.
• This dynamic mechanism is included in the EU’s 18th sanctions package to tighten pressure on Russian oil revenues after the static $60 limit lost effectiveness.
• Greece, Cyprus and Malta have raised concerns about potential shipping sector losses and demand safeguards in the updated framework.
• Uniform adoption requires unanimous consent from all 27 EU member states before the floating cap can take effect.
• Washington has opted not to endorse the change and the Kremlin has dismissed the proposal while preparing countermeasures.