On September 3, experts at the Center for Public Energetics "Vezha" discussed the European Union’s new price cap on Russian oil with economist Oleh Pendzin. According to the EU’s 18th package of sanctions, the new maximum purchase price for Russian oil is set at $47.5 per barrel, down from the previous $60. Additionally, for each monthly and quarterly period, the price must be at least 15% lower than the average in the prior period.
A crucial factor is the participation of insurance providers and international partners. Major insurers are based in the UK, Europe, and partially in the US. However, the United States did not join the lower price cap, keeping its insurance limit at $60 per barrel. This allows buyers like India, China, and Turkey to keep purchasing Russian oil under favorable terms and with discounts of up to $5 per barrel.
More than 80% of Russian oil exports are purchased by China and India, while Turkey takes about 6–7%. Around 3.4% goes to Southeast Asian countries, and up to 10% reaches Europe and beyond via shadow tanker fleets. Much of this oil is shipped via the Baltic and Black Seas through various insurance arrangements.
Analysts note that while the EU’s new restrictions may reduce Russia’s export revenues, the lack of a coordinated US position limits their effectiveness. The partial alignment of Canada and the UK increases overall pressure on Russia's energy sector, but success still relies on the actions of major international markets and Western policy unity.
In summary, while Europe makes steps to strengthen sanctions, their overall effectiveness will depend on coordinated decisions among global players and new regional partnerships.
