NEW YORK, May 31. /TASS/. The European Union is considering temporarily lifting restrictions on the price of Russian oil due to the conflict around Iran, Bloomberg reported, citing sources.
Last year the EU introduced a mechanism ensuring that every six months the price cap for Russian Urals crude oil is automatically set at 15% below the average market price. The current cap is scheduled to be reviewed later this summer. The restrictions prohibit European companies from providing services such as insurance and transportation of oil whose price exceeds the threshold, the agency noted.
Energy prices have risen sharply following the conflict over Iran and the closure of the Strait of Hormuz. At the next review, the ceiling will likely be raised from $60 (set by the G7) to $65, Bloomberg said. To avoid this, the EU is proposing to temporarily freeze the threshold at its current level. Alternative options include suspending the automatic mechanism until the end of the year or limiting any increase to $60, in line with the G7 level, sources said.