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EU delays talks on Russian oil worth cap till subsequent week

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© Reuters. FILE PHOTO: Mannequin of pure fuel pipeline, EU and Russia flags, July 18, 2022. REUTERS/Dado Ruvic/Illustration/FIle Picture

By Jan Strupczewski

BRUSSELS (Reuters) -A gathering of European Union authorities representatives, scheduled for Friday night to debate a Group of Seven (G7) proposal to cap Russian seaborne oil costs, was cancelled, EU diplomats stated.

“There was not sufficient of a convergence of views,” one diplomat stated.

“There will not be a gathering tonight nor this weekend,” a second diplomat stated.

On Thursday, European Union governments had been break up on the extent at which to cap Russian oil costs to curb Moscow’s capacity to pay for its battle in Ukraine with out inflicting a worldwide oil provide shock. The cap is to enter into pressure on Dec. 5.

The concept of the cap is to ban transport, insurance coverage and re-insurance corporations from dealing with cargoes of Russian crude across the globe, until it’s bought for lower than the worth set by the Group of Seven nations and its allies.

As a result of the world’s key transport and insurance coverage companies are based mostly in G7 international locations, the worth cap would make it very tough for Moscow to promote its oil – its largest export merchandise accounting for some 10% of world provide – for the next worth.

Poland, Estonia and Lithuania had been pushing for a a lot decrease cap than the $65-70 per barrel proposed by the G7, whereas Greece, Cyprus and Malta lobbied for the next cap, or some type of compensation for the anticipated lack of enterprise to their massive transport sectors.

The EU diplomats, who declined to be recognized, stated it was not clear how close to either side had been to an settlement.

“The most recent is that Poland, Estonia and Lithuania are attempting to outdo one another on their toughness on the worth cap,” one of many diplomats near the talks stated, including that Poland wished to hyperlink settlement of the worth cap to a brand new package deal of sanctions towards Russia.

“In the meantime Malta, Greece and Cyprus are in it for the cash, whichever approach they will get it – via the next cap, or compensation, and many others. So positions are nonetheless very far aside and the U.S. is nowhere to be seen to deliver the 2 sides collectively,” the diplomat stated.

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