US & Allies Close to Agreement on Russian Oil Price Cap at $60-$70, Report Suggests

WASHINGTON (Sputnik) – The United States and its G7 and European allies are close to agreeing on a Russian oil price cap at $60-$70 per barrel later on Wednesday, American newspaper reported on Tuesday, citing sources in the know.

Later in the day, ambassadors from all 27 European Union states will meet to decide on the price cap, the report said. The decision to introduce the price cap should result from a unanimous vote by the EU members, while the G7 will vote in parallel to the European bloc.

Meanwhile, White House National Security Council spokesman John Kirby said on Tuesday that the European Union (EU) is still deliberating on what the Russian oil price cap level should be and the United States is in touch with its European allies and partners on the issue.

“I'm not going to get ahead of the EU in terms of what the cap actually is. They are still deliberating on that,” Kirby said during a press briefing. “We are in touch with our EU partners about their progress towards this of course and trying to be as supportive as we can be, particularly in terms of the [price cap] implementation.”

If the countries agree on the terms of the price cap, it will be introduced starting December 5.

Russian Deputy Prime Minister Alexander Novak stated on November 21 that Russia will not supply oil and petroleum products to countries that will apply the price cap principle, Moscow will redirect supplies to market-oriented partners or reduce production altogether.

"Russia confirms its status as a reliable energy supplier to the world market and the market status of our relations with partners. In this regard, we do not plan to supply oil and petroleum products to countries that will apply the principle of a price cap with the subsequent reorientation of supplies to market-oriented partners or with a production reduction," Novak said.

Western countries have been seeking ways to limit Russia's income from oil and gas exports since the country launched a military operation in Ukraine on February 24. In September, the G7 finance ministers confirmed their intention to impose a price cap on Russian oil and urged all nations to support the initiative. In October, the European Union introduced the eighth package of sanctions against Moscow, which included a legislative basis for setting a price cap for maritime shipments of Russian oil to third countries.