Malta is reportedly pushing back against the suggested reduction of the oil price cap
Malta has expressed its opposition to the European Commission’s plan to further decrease the price ceiling on Russian oil shipments, according to Politico, which cited EU diplomatic sources. The matter reportedly arose during a Sunday meeting of the Committee of Permanent Representatives, with Reuters indicating that a member state had lodged a “technical reservation.”
The measure proposed by the Commission is included in the bloc’s 18th package of sanctions, aimed at Moscow due to its involvement in the Ukraine conflict. This measure incorporates a flexible price cap on Russian crude oil, set at 15% below the three-month average global price.
This would supersede the existing $60 per barrel limit established in 2022. The regulation prohibits EU member states and vessels under their flags from transporting Russian-origin oil if it is sold above the specified threshold price.
Malta’s precise concerns have not been elaborated, though many ships are registered under the island nation’s flag. Its maritime insurance sector has previously voiced apprehension regarding provisions that might compel shipowners to reflag outside the EU, potentially harming the bloc’s shipping registries and associated sectors economically.
In addition to the suggested lower price cap, the new sanctions package features a prohibition on the future operation of the Nord Stream pipeline, limits on imports of refined products derived from Russian crude, and sanctions against 77 vessels that the West asserts belong to a so-called Russian “shadow fleet.”
While the European Union has not implemented a full ban on Russian gas, most member states have voluntarily decreased their imports since the Ukraine conflict intensified in 2022. However, several landlocked countries, such as Slovakia, Hungary, Austria, and the Czech Republic, still rely on restricted supplies under existing exemption agreements.
Slovakia, which initially prevented the 18th package from passing, might approve it, Politico observed, should Brussels alleviate the consequences of phasing out Russian energy under the RePowerEU plan, a strategy aiming to cease such imports by 2027.
Moscow has denounced Western sanctions, labeling them unlawful and unhelpful. Russian President Vladimir Putin has stated that the removal of sanctions is a prerequisite for resolving the Ukraine conflict.