Reference Message Network reported on June 21 that TASS cited the website of "Politico Europe" on June 20, reporting that the EU has abandoned the practice of reducing the price cap for Russian oil exports, which was supposed to be part of the EU's 18th round of sanctions against Russia.

The website reported that "due to the sharp rise in oil prices caused by the Middle East war, the EU has 'put aside' the plan to reduce the price cap for Russian oil exports." The website quoted diplomatic sources as saying that taking such measures at this time is "impractical."

EU Commission President Ursula von der Leyen previously announced that the EU would lower the price cap for Russian oil exports from $60 per barrel to $45 and take measures to ensure that this move could be implemented to some extent.

The report said that the impracticality of the plan became apparent during the G7 summit held recently in Canada. The EU Commission tried to push other Western countries to reach a consensus on the price cap for Russian oil exports, but the participating countries could not even pass a joint statement on the Ukraine issue.

After the summit, von der Leyen had to admit that the effect of the price cap measure was limited. She acknowledged the failure of the attempt to reduce it but believed that the $60 cap could still play its role due to the rise in oil prices.

Russian Deputy Prime Minister Novak refuted her view at the St. Petersburg International Economic Forum, saying that "the EU can even set the cap at zero yuan," but it would make no difference.

The price cap order on Russian seaborne oil exports came into effect on December 5, 2022. The EU also banned related entities from providing transportation, insurance, financial services, and other services for oil tankers transporting Russian oil above the price cap. This decision led to the rapid spread of the "shadow fleet," with shipowners choosing to sign market contracts to transport Russian oil for profit. (Translated by Tong Shiqun)

Original article: https://www.toutiao.com/article/7518322353718313526/

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