- The EU is considering price caps and tariffs on Russian oil to undercut Moscow's finances, per the FT.
- Russia provides about one-quarter of the EU's oil imports, according to the bloc's stats agency.
- Germany has warned that a full embargo on Russian oil imports would cause severe economic damage.
The European Union is considering price caps and tariffs on Russian oil imports to squeeze a vital revenue stream for the Kremlin, the Financial Times reported Tuesday.
The measures have been proposed ahead of EU talks about implementing further sanctions against Russia over its invasion of Ukraine, per the FT.
Price caps or tariffs on Russian oil imports would allow the EU to undercut Moscow's finances while averting the economic chaos that would be caused by a full embargo. Russia provides about one-quarter of the EU's oil, according to Eurostat, the bloc's statistics agency.
Italy has supported the idea of capping Russian oil prices but other EU countries aren't as keen. Germany, the EU's largest economy and the bloc's premier importer of Russian energy, would be most affected by measures designed to squeeze Russian energy.
One senior German official told the FT that a price cap would be challenging and in breach of contract, while another said capping costs "isn't being taken seriously."
The European Commission didn't immediately respond to Insider's request for comment.
Western nations have taken different approaches to Russian energy imports since the Ukraine invasion began on February 24. The US decided to ban Russian energy imports but the EU, which relies on Russia for around a third of its oil and natural gas, is reluctant to do so.
Germany, which buys about 25% of its oil from Russia, has said it will stop importing Russian oil by the end of the year, and has asked for patience as pressure mounts to impose a full embargo sooner.
Russian oil production fell about 9% from February to the beginning of April, according to data from OilX shared with Insider.
Exiled oligarch Mikhail Khodorkovsky told the BBC that Putin would suffer a "very serious blow" if European countries banned Russian oil and gas.
