The G7 is preparing to announce a price cap on Russian oil and is eying a price of $65-70 per barrel, according to people familiar with the negotiations.
EU ambassadors are today discussing the proposal, as they have to sign off on the plan as soon as possible.
The EU embargo on Russian oil kicks in on December 5.
The level of the proposed cap is much higher than Russian production costs and also higher than what U.S. Treasury Secretary Janet Yellen had previously suggested, which was about $60 per barrel.
At the meeting of EU ambassadors, Poland and Hungary raised objections to the price cap plans, according to the two people, who spoke on condition of anonymity. Warsaw had previously indicated it wanted the cap to be closer to $20 per barrel, which would bring it closer to Russian oil production costs, and thus do more damage to the Kremlin’s war chest.
Poland also wants the cap to be accompanied by a new sanctions package, as POLITICO previously reported. The talks on the oil price cap are continuing on Wednesday afternoon.