European Union governments failed to agree on Monday on a price cap on Russian seaborne crude oil, Reuters reported, citing diplomats.
"There is no deal. The legal texts have now been agreed, but Poland still can't agree to the price," one diplomat said. No new date for talks has been set yet, diplomats said, even though the price cap mechanism is to enter into force on Dec. 5.
Last week, the European Commission suggested a price cap of 65-70 US dollars per barrel be put on Russian oil. Poland and Baltic countries insisted on a lower cap, while Greece, Cyprus and Malta, who depend on tanker shipments, want the cap to be set higher or another format of compensation to be offered.
Deliberating on a possible lower limit, another European diplomat said that Russia would be able to cover production costs when oil price is within a range of from 12 to 20 US dollars per barrel.
EU countries failed to agree a price cap on Russian oil on November 25 and postponed the talks to November 28.
Earlier, the Group of Seven finance ministers announced plans to put a price cap on Russian oil, for which ends it is suggested an international coalition be set up and any services related to the seaborne shipment of Russian oil be banned in case this oil is sold at a price exceeding the limit agreed by the coalition. This decision is expected to come into effect on December 5.
