Russian Oil Price Cap: Problems of Regulation by EU Law

Abstract This article analyses the legal challenges and uncertainties faced by the European Union in regulating the price cap on Russian oil. Initiated by the Price Cap Coalition, comprising major Western nations, the price cap is an innovative legal tool aimed at restricting Russian oil revenues amidst the ongoing war between Russia and Ukraine. The article examines the legal nature of the Price Cap Coalition and discusses whether this coalition constitutes an international agreement. It includes an in-depth analysis of the price cap’s legal framework, including its personal, temporal, and material scope. Furthermore, the article scrutinises the legal complexities, such as compliance issues, exemptions, contradictions, and imperfections within EU rules. Additionally, it addresses Russian legal countermeasures against the price cap mechanism. The analysis concludes that while legally innovative, the mechanism’s efficacy is undermined by structural weaknesses in its legal design and compliance framework.