The international working group on the development of sanctions against Russia, co-chaired by the head of the Office of the President Andrii Yermak and former U.S. Ambassador to Russia Michael McFaul, proposes to reduce the upper limit of the oil price to USD 45 per barrel of crude oil (barrel) with a target of USD 30 per barrel.
This is stated in the Action Plan 2.0 on Strengthening Sanctions against the Russian Federation, Ukrainian News Agency reports.
It is noted that the current agreed upper limit of the price of oil is USD 60 per barrel, which is significantly higher than the marginal cost of producing a barrel of oil in Russia.
"The coalition should immediately reduce the oil price ceiling by USD 15 per barrel to USD 45 per barrel, the level at which Russian exporters have regularly been willing to sell oil in recent months. It should set itself the goal of reducing the oil price ceiling to marginal cost of Russian oil, which, in our opinion, is currently USD 30 per barrel, with a corresponding reduction in the upper limits for petroleum products," the document says.
It is also proposed to strengthen control over compliance with the limit prices for oil, as well as to introduce a tax on the import of Russian oil and gas to the countries of the sanctioning coalition.
"We propose to introduce an import tax on all Russian oil and gas supplied to coalition countries as a structural measure to strengthen the price ceiling. As an additional benefit, this tool can be used to finance the recovery of Ukraine," the document says.
In addition, it is proposed to stop the direct supply of Russian gas to the European Union (EU), except through Ukraine.
"We are proposing sanctions that would result in the suspension of all Russian-controlled pipeline routes that are currently capable of transporting Russian natural gas to the European market, excluding any flows through the Ukrainian gas transportation system that has sufficient transit capacity. In particular, this the measure will put an end to Russia's use of Turkish Stream to supply gas to the EU. In addition, we propose sanctions that would ban the import of Russian liquefied natural gas (LNG) to Europe," the document states.
As Ukrainian News Agency earlier reported, President Volodymyr Zelenskyy considers the European Union's decision to limit the export price of Russian oil at USD 60 per barrel to be comfortable for Russia.
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