New EU sanctions on Russia including oil price cap come into force

Interational Desk//

Russian oil export prices are to be capped in addition to extra trade restrictions and travel bans as part of an eighth sanctions package on Russia formally adopted by EU countries.

The new measures lay the groundwork for a price cap on Russian oil shipped to third countries, as it was previously agreed on by the G7 group of leading economies, Al Jazeera reports.

Under the cap, the transport of oil but also providing services for the shipments, including insurance and financial services, will be prohibited if the oil was sold above a certain threshold.

The level of the price cap still needs to be agreed on by the G7 group and unanimously approved by the EU’s 27 member states.