The EU plans to propose reducing the price cap on Russian oil to the G7 nations as part of its 18th sanctions package.

European Commissioner for Economic Affairs Valdis Dombrovskis did not specify the proposed reduction, but may suggest lowering the cap from the current $60 to $50 per barrel. Dombrovskis intends to formally present this proposal during a meeting of G7 finance ministers later this week.

Finnish Foreign Minister Elina Valtonen also supports the idea of strengthening sanctions against Russia, which continues its military action in Ukraine, suggesting a reduction in the oil cap, potentially down to $40 per barrel. Given recent declines in oil market prices, a lower cap is warranted.

“We are currently waiting to see what the US position will be: whether they want to tighten restrictions against Russia or not,” Valtonen remarked.

As reported by German government spokesperson Stefan Kornelius, the EU has begun preparing its 18th sanctions package against Russia in coordination with the US, with the German government backing sanctions related to the Nord Stream gas pipeline.