What happened
The European Union member states agreed on a renewed sanctions package against Russia linked to the Ukraine war. As part of that package, the European Union has kept the cap on Russian seaborne global crude exports at $44 and frozen the cap for 12 months.
The sanctions measure is meant to reduce Russia's oil revenue while preserving the movement of crude in global markets.
Background and earlier position
The oil price-cap mechanism is part of the wider sanctions architecture used against Russia after the Ukraine war began. The mechanism seeks to limit the price Russia can receive for seaborne crude exports rather than stopping exports altogether.
European Union envoys were working to finalise terms before a deadline that could have allowed the cap to rise. The European Union instead chose to keep the cap unchanged for another year.
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