Estonia has threatened to block the European Union’s 18th sanctions package against Russia unless the bloc agrees to lower the oil price cap from $60 to $45 per barrel.
This announcement was made by the Estonian Foreign Minister Margus Tsahkna on Wednesday.
Speaking to Estonian broadcaster ERR, Tsahkna emphasized,
“We are in a very clear position that the oil price cap must be part of this package,”
He described the reduction as “the most powerful element” to curb Moscow’s energy revenues.
Context and Opposition
The EU’s current $60 per barrel cap, set in 2022 when oil prices exceeded $100, restricts EU-flagged vessels and service providers from handling Russian crude sold above that threshold.
With oil now trading at approximately $69 per barrel, the cap’s effectiveness has been questioned.
Tsahkna criticized efforts by some member states, notably Mediterranean countries like Malta with significant shipping interests, to weaken the package, as reported by Delfi.
Estonia, however, remains firm, urging alignment with the European Commission’s original proposal.
Broader Support and Implications
European Commission President Ursula von der Leyen proposed the $45 cap last month to reduce Russia’s fossil fuel income, which funds its war in Ukraine.
Despite the cap’s stability for over a year, growing support from G7 countries and the US, including a sanctions push by Senators Lindsey Graham and Richard Blumenthal, suggests a potential shift.
Tsahkna highlighted that coordinated action could exert significant pressure on Russia, though discussions remain ongoing with no final decisions reached.
Outlook
Estonia’s stance hinges on gaining backing from larger EU nations, a critical factor as the bloc navigates internal divisions.
The outcome could reshape the EU’s sanctions strategy, balancing economic impact with geopolitical tensions.
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