EU to adopt price cap on Russian oil despite the major economic crisis in member states.

Following months of debate, the EU has finally reached an agreement to impose a price cap on Russian oil sales to third countries, in an attempt to block Moscow's use of EU-registered vessels for its oil exports, all while excluding pipeline deliveries from the 8th round of sanctions on Russia, Politico Europe reported on Tuesday.

According to the report, Cyprus, Malta and Greece, which had previously voiced their concern on the matter due to its impact on the shipping industry in the countries, have been promised concessions by Brussels that proposed measures induced through a "monitoring system" to help ease the effects of the embargo that might emerge as a "significant loss of business" if commercial vessels were to resort to reflagging. A final agreement is expected to be reached on Wednesday by EU ambassadors, seven diplomats told Politico on the condition of anonymity.

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Earlier, US Assistant Secretary of Treasury for Terrorist Financing and Financial Crimes Elizabeth Rosenberg said the process of determining a price for the Russian oil price cap agreement has begun. Commenting on whether the price has been set for the price cap on Russian oil during a congressional hearing, Rosenberg said, "The process has begun to set the price."

US Treasury Department announced in a guidance document released at the beginning of September that buying considerable amounts of Russian oil above the price cap agreed upon or providing fraudulent data or documentation of the transactions may bring about sanctions enforcement, while G7 finance ministers and central banks stated that the decision to impose price caps on Russian oil was adopted unanimously at a virtual meeting of the group. The price ceiling will go into force on December 5 for crude oil and February 5 for Russian refined goods. Following the G7 decision, the European Commission has already stated that it will take steps to put a price ceiling on Russia's oil by December.

Putin: No gas, no oil, no coal, nothing

Russian President Vladimir Putin commented on the price cap attempts by stating that Russia will stop supplying oil and gas to countries that impose price ceilings. Capping prices, as some Western countries are considering, "would be an absolutely stupid decision," Putin told the Eastern Economic Forum in the Pacific port city of Vladivostok.

"We will not supply anything at all if it is contrary to our interests, in this case economic (interests)," he said. "No gas, no oil, no coal, no fuel oil, nothing."

In his turn, Energy Minister Nikolay Shulginov confirmed that Russia refuses to supply any country with natural gas and oil below market price, rejecting the "price cap" idea floated by EU officials as an attempt to force a "cartel deal" on Moscow. The schemed plan is to push soaring energy prices even higher, Shulginov believes, suggesting that the EU leadership does not fully realize what it is doing, “They are no longer aware of what they are doing. Only making it worse for themselves."

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Macron warns Europe of consequences next winter if it imposes embargo

Last April, French President Emmanuel Macron stated that If Europe decides to impose a gas embargo on Russia, the consequences would be seen next winter: "We will not see the consequences of this [sanctions against Russian energy resources] in the spring and summer of 2022 [as gas storages have been replenished], but next winter, we will feel them if there is no more Russian gas."

The disruptions in supply chains following Russia's operation in Ukraine and the subsequent comprehensive Western sanctions imposed on Russia caused a sharp increase in energy and food prices across the EU.