EU postpones talks on oil price cap

European Union diplomats suspended talks on capping Russian oil prices as Poland and the Baltic states objected to a proposal they consider too generous to Moscow.

Diplomats had expected a deal to be done Friday night but positions remained entrenched and the talks were postponed to Monday, according to people familiar with the matter.

The bloc has been locked in a fight over how strict the Group of Seven-led price cap should be. Poland and the Baltic nations are outraged at a proposal to cap Russian oil prices at $65 per barrel limit, as the level is above the rates Moscow sells crude now.

Poland is demanding additional sanctions, a review mechanism and a price below the market level, according to a senior diplomat.

With Poland and the Baltic states digging their heels in, the spat has laid bare the fundamental tension at the heart of the price cap idea.

Shipping nations such as Greece favor a higher level that will help keep trade flowing.