Estonia vows to veto EU's 18th sanctions package on Russia without stricter oil price cap
Estonia has issued a stark warning to veto the European Union's proposed 18th sanctions package against Russia unless it includes a tougher cap on Russian oil prices, according to ERR. Estonia's Foreign Minister Margus Tsahkna announced the country's firm stance, emphasizing that the reduction of the oil price cap should be key in the forthcoming sanctions.
"We hold a very clear position that the reduction of the oil price cap must be incorporated into this package. We have a strong stance on this matter," Tsahkna stated. He explained that the European Commission initially proposed lowering the current cap from $60 a barrel to $45. Still, Mediterranean countries with significant shipping industries, notably Malta, oppose this provision. As a result, Estonia is prepared to veto the adoption of the 18th package without this critical price cap adjustment.
Tsahkna also expressed hope for backing from major EU countries, reminding that the $60 cap has been enforced for two years without decrease due to Western resistance. Now, however, there appear to be signs of a renewed will from G7 nations to implement a stricter cap on Russian oil. Additionally, recent signals from the U.S. suggest an inclination towards increasing pressure on Russia with fresh restrictions.
The EU continues to ban member-state vessels from transporting Russian oil sold above the ceiling. Insurance companies and other service providers are similarly prohibited from supporting such transactions. Despite this, Russia has been selling oil above the cap to other global markets, leveraging its 'shadow fleet' of tankers.